5 an insurance policy is acceptable in lieu of an insurance certificate and

5 an insurance policy is acceptable in lieu of an

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5.an insurance policy is acceptable in lieu of an insurance certificate and vice versa.6.according to article 13 of UCP600, if the credit stipulates that a claiming bank must supply acertificate of compliance with the terms and conditions of the credit when makingreimbursement claim, the reimbursing bank can disregard such a stipulation.7.a bill of lading with pre-printed wording to show that the goods have been loaded on boardcan simultaneously bear a dated on-board notation. In such a case the date of the on-boardnotation will be deemed to be the date of shipment whether it is earlier or later than theissuance date or the two are the same.8.if the bill of lading indicates a place of receipt or taking in charge different from the port ofloading, the on board notation must also include the port of loading stipulated in the credit andthe name of the vessel on which the goods have been loaded, even if they have been loaded onthe vessel named in the bill of lading. This provision does not apply when loading on boardthe vessel is indicated by pre-printed wording on the bill of lading.9.terms such as “first class”, “well-known”, “independent”, “local”, “official”, “qualified”,“competent” and the like are ambiguous words in light of the UCP. If such terms areincorporated in the credit, banks will accept the relative document (s) as presented, providedthat it appears on its face to be in compliance with the other terms and conditions of the credit.10.as for a charter party bill of lading, banks will not examine the charter party contract to whichthe bill of lading is subject. But if the credit requires beneficiary(ies) to present the contractalong with other documents banks have to determine whether it is in compliance with the
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terms and conditions of the credit.11. under a freely negotiable and transferable credit any bank except the issuing bank is anominated bank. Now that the relative article of UCP600 sets a rule that only the nominatedbank has the right to make the transfer, thereof any bank exclusive of the issuing bank cantransfer such a credit unless otherwise stipulated.12.without the agreement or authorization of the applicant, an issuing bank must issue a creditstrictly as what the application says and cannot make any alteration even if to supplement ordevelop the terms in a manner necessary or desirable to permit the use of the credit.13.if a signature and/or endorsement is required to be on a document consisting of more than onepage, the signature is normally placed on the first or last page of the document, but unless thecredit or the document itself indicates where a signature or endorsement is to appear, thesignature or endorsement may appear anywhere on the document14.if an L/C requires “invoice” or “one invoice” it will be understood to be a requirement for anoriginal invoice. If an L/C requires “invoice in 1 copy”, it will be understood to be arequirement for a copy of an invoice.
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  • Fall '14
  • Contract Law, Legal documents, Bill of lading, Trade finance, Letter of credit, Waybill

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