第六章
练习11
1. In simple terms, a letter
of credit is a conditional bank writte
n undertaking of pay- ment. According to UCPS00 Article
9 please define conditional undertaking of the issuin
g bank.
A letter of
credit constitutes a definite undertaking of the issuing bank, provided that
the stipulated are presented to the or to the issuing bank and that the terms and conditions of the Credit are to pay or accept and pay draft (s).
2.Under“independence and abstraction principle” (also called \of the documentary credit”),who should fulfill their independent undertaking of payment? (1)□nomindated bank (2)□ issing bank (3)□advising bank
3. What are separate transactions from sales contract(s) on which gyey may be based and banks are in no way hound hy such contract(s)? (I) □credits (2) □standby (3) □guarantee
4. What are dealt with by all parties concerned and not with the related goods? (1) □ drafts
(2) □ instruments (3) □ documents
5. The fundamental concept of autonomy of documentary t'redit is thai the issuing bank should fulfill its undertaking of payment independently without interference come from other parties and therefore to safeguard bank's prestige, if the applicant found obvious evidence revealing beneficiary' s fraud crime, banks and applicants might carry out principle for refusal of payment in order to remedy the shortcoming of autonomy of documentary credit in the event of fraud.
6. A credit stipulates that 50% of the credit amount will be paid against the presentation of documents which have been complied with the terms and ~'onditions of the credit and the remaining 50% of the credit amount will be paid on arrival of goods at destination which were corresponded with the description of goods in the credit.
(1)□The above credit is acceptable. (2)□The above credit is not acceptable.
7.A Credit stipulates that quantity of goods, grade A 60%, quantity of goods,
grade B 40%. Beneficiary presented invoices being evidenced goods in grade A 40%, graed B 60% which were in accordance with sales contract as he said that the credit has stipulated erroneously.
(1) □The above invoice is acceptable. (2) □The above invoice is not acceptable.
8. How many basic parties are there in a documentary credit? (1) the
(2) the if any (3) the
9. What is the feature of two - party credit?
(1)□It contains only two parties in the credit, namely issuing bank and beneficiary. (2)□The issuing bank also becomes the applicant
10. Does the beneficiary have the ability to present documents directly to the issuing bank? (1) □Yes (2) □ No
11. Presentation of documents to the issuing bank as compared with presentation of documents to the nominated bank, please point out the following three shortcomings as arised from the former method of forwarding documents.
(1)□The expiry date is at the counter of the issuing bank, so the beneficiary must be early to forward documents
(2)□The issuing bank wish to receive documents from the nominated bank. (3)□Beneficiary would sustain the risk of documents lost in transit (4)□Nominated bank would not examine documents.
(5)□When issuing bank examines documents and finds out some places on the documents which need to alter, beneficiary is not convenient to make such alterations.
12. Prior to advising a documentary credit to the beneficiary, the advising bank is responsible for: (1) □effecting payment against conforming documents.
(2)□checking the apparent authenticity of the documentary credit.
(3)□notifying the issuing bank that the documentary credit is being advised (4) checking that the reimbursement method is effective.
13. A Swiss Bank issued a credit and an Indonesian bank negotiated it and gave value to the beneficiary. After the negotiation the negotiating bank claimed reimbursement and received the funds from the reimbursing bank. The issuing bank did not receive the documents and then found that they were lost in transit. The issuing bank requested the negotiating bank to refund the funds, please look at the following points of view which is correct.
(1) □ Issuing bank undertakes to pay the beneficiary upon receipt at its counters of conforming documents. (2)□ Risk of documents lost in transit passed from the beneficiary to the issuing bank when conforming documents were accepted by the nominated bank or by the negotiating bank in a freely negotiable credit, the issuing bank must honour complying documents even if they are lost in transit.
(The following questions belong to those mentioned in Section 4 - Issuance of credits at the Text book.) 14. A Credit stipulates:
\(1)□It is not acceptable.
(2)□ It may be treated as a non - documentary condition, bank will disregard such condition. 15.A Confirming bank examines documents under a documentary credit, which re- quires presentation of an Invoice, Certificate of Origin and an Ocean Bill of Lading. The documentary credit also includes the following clause: \– All packages must be clearly marked with the country of origin.\
Where the documents do not show that the packages have been marked in this way and otherwise in order, the Confirming bank should:
(1) □reject the documents and suggest to the Beneficiary the presents a certificate evidencing that this condition has been complied with.
(2) □ reject the documents and suggest to the beneficiary that the Certificate of Origin be amended to include the special condition.
(3) □ contact the issuing bank and withhold payment until clarification is received. (4)□ ignore the special condition and honour the beneficiary's presentation of docu- 16. A credit stipulates:
\(1)□ It is acceptable.
(2)□ It is not acceptable as such stipulation should not be made and the require ment cannot be ascertained from the face of the transport document. 17. A Credit stipulates:
“Full set of 3/3 originals Air Waybill made out to order blank endorsed.\(1) □ It is correct. (2) □ It is incorrect.
18. The bill of lading is issued subject to the terms and conditions of a charter party and the credit is silent in this connection.
(1) □ It is acceptable. (2)□ It is not acceptable. 19. A credit stipulates:
\
The invoice shows that the gross invoice amount CIF Los Angeles USD 10,000.00 less 2% commission USD 200.00, the net invoice amount CIF Los Angeles USD 9,800.00.
(1) The insurance document covers for USD 10,780.00 which is □acceptable or □ not acceptable. (2) The insurance document covers for USD 11,000.00 which is □ acceptable or □ not acceptable.
20. If the applicant wants the issuing bank to instruct the Nominated bank to advise the credit to the beneficiary without their confirmation but if the beneficiary subsequently requests that the credit be confirmed, then the nominated bank is authorised to add their confirmation and enter into an undertaking to the beneficiary. How issuing bank marks the following check boxes? (1)□without adding your confirmation. (2)□ adding your confirmation.
(3)□adding your confirmation if requested by the beneficiary.
21. Whether documents specified under the heading \- documentary?
(1)□ Those documents as above- mentioned may be considered non-documen-tary.
(2)□ It matters not where the document is stated in the credit. If a document is required, it must be presented.
22. A Credit stipulates it is available for a period of six months but does not indicate from when. What should a bank who is requested to confirm do:
(1) □Clarify with issuing bank before confirming.
(2) □Fake it that the LC is available six months from date of confirmation. (3) □Take it that the LC is available six months from date of issue.
23. A Credit states that the shipment must be made on or about,27 June. Which of the following shipment dates would be acceptable? 1) 20 June 2) 27 June 3) 02 July 4) 03 July
(1) □1) and2) only (2) □1) and4) only (2) □2) and 3) only (4) □3) and 4) only 24. A Credit stipulates:
\
\(1) □The above clauses are acceptable.
(2)□The expressions of prompt, immediate, as soon as possible containing vague meaning so the banks will disregard them.
25.A Credit is received without a stipulation of whether partial shipments are allowed. Which of the following statements is applicable? (1)□They are allowed.
(2)□ Refer to the issuing bank. (3)□ Refer to the beneficiary. (4)□They are prohibited.
1. Under an irrevocable credit, who must undertake primary liability for payment.'? (1) □ the applicant (2) □the issuing bank (3) □ the nominated bank
2. Ti me of effectiveness of the amendment for the issuing bank is: (l) □the date of acceptance of the amendment by the beneficiary (2) □the date of issuance of the amendment by the issuing bank (3) □the date of advising amendment by the advising bank 3. An irrevocable confirmed credit gives the beneficiary: (1) □ a single assurance of payment (2)□ a double assurance of payment (3)□a triple assurance of payment
4. A bank authorized to negotiate a revocable letter of credit is entitled to obtain reimbursement if the cancellation of the credit is received. (1) □ after shipment date
(2) □ after presentation of an on board transport document (3)□ after taking up of conforming documents
5. Under negotiation credit, the negotiating bank make payment to the beneficiary (1) □with recourse. (2) □ without recourse.
6. Under negotiation credit, the confirming bank make payment to the negotiating bank (1) □ with recourse. (2)□without recourse.
7. Under negotiation credit, the issuing bank make payment to the confirming bank (1) □ with recourse. (2) □without recourse. 8. A Credit stipulates:
Shipment from HongKong to Manchester, transhipment prohibited (l) □The above clause is acceptable.
(2) □The above clause is contradicted in the former sentence with the latter. Shipment is to be made from a sea port to an inland city, it must be amended to read\
9. Documents are presented in accordance with the terms of an unconfirmed documentary credit payable at