sight and the Nominated Bank chooses to negotiate them.
Which of the following statements best describes the Nominated Bank's actions? 1) Make immediate payment to the beneficiary. 2) Effect payment on receipt of covering funds. 3) Present documents to the Issuing Bank. 4) Confirm sight to the Reimbursing Bank. (1) □ 1) and 3) only (2) □ 1) and 4) only (3) □ 2) and 3) only (4) □ 2) and 4) only
10. When an advising bank has accepted a Time/Usance draft under an advised documentary credit, they are responsible for effecting payment at maturity when: (l) □ they have received funds from the Issuing Bank.
(2) □ they have received funds from the Reimbursing Bank. (3) □ the draft is verified by the applicant. (4) □ the draft is presented by the beneficiary.
11. If an applicant requests thai the credit expires for presentation at the Issuing Bank with drafts drawn on the Issuing Bank 90 days after sight, how the credit be made available? (1) □ by sight payment (2) □by deferred payment (3) □ by acceptance (4) □ by negotiation
12. If a bank at the request of the Issuing Bank confirms a credit, but it is not authorised as Nominated Bank. When a Nominated Bank forwards documents for reimbursement, where are the documents despatched to? (1) □ Issuing Bank (2) □ Confirming Bank
13.Silent confirmation is an arrangement made between: (1) □ Beneficiary and Advising Bank (2) □ Issuing Bank and Advising Bank
14. Ncgotiatinn means that the Negotiating Bank gives value for draft (s) and/or documents to the Beneficiary. Once the value has been given, the Negotiating Bank would become: (1) □the creditor of the draft (s) (2) □ the holder of the draft (s)
(3) □ the holder in due course of the draft (s)
15. Put × in relative check box of the following sentences or fill the blanks to issue an irrevocable confirmed documentary credit which is to expire on or before 30 June,
200 x and is available with the advising bank, Bank of China, Shanghai by payment at sight against draft (s) and documents.
(1) In lrrevocable Documenlary Credit Form (Advice for the advising bank) We request you to advise beneficiary: ①□ without adding your confirmation. ②□adding your confirmation.
③□adding your confirmation if requested by the beneficiary. (2) In Notification of Irrevocable Documentary Credit Form
①□This notification and the enclosed advice are sent to you without any engage ment on our part.
②□As requested by the issuing bank, we hereby add our confirmation to this credit in accordance with the stipulations under UCP500 Article 9.
(3) In Irrevocable Documentary Credit Form (Advice for the beneficiary) Expiry date and place for presentation of documents expiry date: place for presentation: credit available with ①□by payment at sight ②□by deferred payment at ③□by acceptance of draft (s) at ④□by negotiation
against the documents detailed herein ⑤□and beneficiary's draft (s) drawn on
16. Put × in relative check box of the following sentences or fill the blanks to issue an irrevocable unconfirmed documentary credit which is to expire on or before 30 June, 200 x and is available with the advising bank, the Industrial and Commercial Bank of China, Shanghai by deferred payment at 30 days after presentation of documents against the documents.
(1) In Irrevocable Documentary Credit Form (Advice for advising bank) We request you to advise beneficiary: ①□ without adding your confirmation. ②□adding your confirmation.
③□adding your confirmation if requested by the beneficiary. (2) In Notification of [rrevocable Documentary Credit Form
①□This notification and the enclosed advice are sent to you without any engagement on our part.
②□ As requested by the issuing bank, we hereby add our confirmation to this credit in accordance with the stipulations under UCP500 ArtMe 9.
(3) In Irrevocable Documentary Credit Form (Advice for the beneficiary) Expiry date and place for presentation of documents expiry date:
place for presentation: credit available with ①by payment at sight ②by deferred payment at ③by acceptance of draft (s) at ④by negotiation
against the documents detailed herein ⑤and beneficiary's draft (s) drawn on
17. Put x in relative check box of the following sentences or fill the blanks to issue an irrevocable credit which is to expire on or before 30 June, 200 × and is available with the issuing bank, Dresdner Bank, Hamburg by acceplance of draft (s) at 90 days sight.
In Irrevocable Documentary Credit Form (Advice for the beneficiary) Expiry date and place for presentation of documents expiry date: place for presentation: credit available with ①payment at sight ②deferred payment at
③acceptance of draft (s) at ④negotiation
against the documents detailed herein
⑤and beneficiary' s draft (s) drawn on
18. Put ×in relative check box of the following sentences or fill the blanks to request Banque Nationale de Paris, Paris to issue an irrevocable credit which is to expire on or before 30 June, 200 × and is available with the advising bank, Bank of Communications, Shanghai by negotiation against draft (s) at sight and documents.
In lrrevocable Documentary Credit Form (Advice for the beneficiary) Expiry date and place for presentation of documents expiry date:
place for presentation: credit available with ①□by payment at sight ②□by deferred payment at ③□by acceptance of draft (s) at ④□by negotiation
against the documents detailed herein
⑤□and beneficiary's draft (s) drawn on
19. Put ×in relative check box of the following sentences or fill the blanks to request The Mitsui Bank Ltd., Tokyo to issue an irrevocable credit which is to expire on or before 30 June, 200 x and is available with any bank in China by negotiation against draft (s) at sight and documents.
In Irrevocable Documentary Credit Form (Advice for the beneficiary) Expiry date and place for presentation of documents
expiry date:
place for presentation: credit available with ①by payment at sight ②by deferred payment at
③by acceptance of draft (s) at ④by negotiation
against the documents detailed herein
⑤and beneficiary's draft (s) drawn on 20．
FROM: XYZ BANK LTD ANYTOWN ANYWHERE TO: ADVISING BANK SOMETOWN SOMEWHERE DATE 30 MARCH
OUR DOCUMENTARY CREDIT REFERENCE NO 1234
TEST NO 4321 FOIl USD 2050000 DATED 30 MARCH WITH OUR HEAl) OFHCE
WE ()PEN OUR DIVISIBI,E, FRACTIONABLE DOCUMENTARY CREI)IT NO. 1234 ORDER ACCOUNT OF: UVW COMPANY ANYTOWN ANYWHERE. FAVOUR: I/ST COMPANY SOMETOWN SOMEWHERE
FOR THE AMOUNT OF USD2,050,000.00 (TWO MII~IAON AND FII,'TY THOUSANI) AND 00/100 U NITED STATES I)OLLARS) COVERIN(; SHIPMEN'F OF
1200 MT. MII,K POWDEI/ CFR ANYWHERE
SHIPMENT FROM ANY PORT SOMEWHERE TO ANY P()RT ANYWIIERE TRANSHIPMENT AI,LOWEI) PART SHIPMENTS AI,I~OWED
VALID FOR NEGOTIATION AT THE COUNTERS OF TIlE CONFIRMING BANK UNTIL 21 JULY SHIPMENT TO BE EFFECTEI) AS FOLLOWS:
1STSHIPMENT FOR 600 MT. ON OR ABOUT 27 APRIL
2STNDSHIPMENT FOR 600 MT. TO BE EFFECTH) BETWEEN 01 ~NI)31 MAY BOTH END DATES TO BE INCLUSIVE.
AVAILABLE FOR NEGOTIATION OF DRAFTS AT 60 DAYS SIGHT DRAWN ON UVW COMPANY ANYT OWN ANYWHERE ACCOMPANIED BY THE FOLLOWING DOCUMENTS: 1.SIGNED COMM ERCIAL INVOICE IN TRIPLICATE.
2. FULL SET CLE AN SHIPPED ON BOARD BILLS OF LADING CONSIGNED 'FO ORDER OF XYZ BANK LTD MARKED FREIGHT PAID AND NOTIFY THE ~CCOUNTEE. 3. QUAI,ITY CEI~TIFICATE ISSUED BY A COMPETENT AUTHORITY.
4. COPY OF FAX SENT TO ACCO{ NTEE ADVISING SHIPMENT DETAILS, SHIPMENT DATE. INVOICE VALUE AND DOCUMENTARY CREDIT NUMBER WITHIN FIVE DAYS OF SHIPMENT. 5.PACKING LIST.
SPECIAL INSTRUCTIONS
1. ALL BANK CHARGES OUTSIDE ANYWHERE INCLUDING REIMBURSEMENT CHARCES ARE FOR ACCOUNT OF UVW COMPANY.
2.PLEASE ADVISE THE BENEFICIARY ADDING YOUR CONFIRMATION.
3. CLAIM REIMBURSEMENT FROM OUR ACCOUNT WITH OUR NEW YORK OFFICE AT MATURITY FOR DOCUMENTS PRESENTED IN STRICT COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS DOCUMENTARY CREDIT.
4. THIS DOCUMENTARY CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISION) INTERNA- TIONAL CHAMBER OF COMMERCE (PUBLICATION NO 500).
Please examine the above L/C and answer the following questions:
1) The documentary credit should be advised as: (1) □ Revocable (2) □ Irrevocable
(3) □ Revocable Transferable (4) □ Irrevocable Transferable
2) All of the following documentary credit terms and conditions under UCP may be disregarded except : (1) □ divisible (2) □ fractionable
(3) □adding your confirmation
(4)□ issued by a competent authority
3) Which of the following Bill of Lading \1. 17 April. 2. 20 April. 3. 25 April. 4. 02 May. (1) □3 only.
(2) □3 and 4 only. (3) □2, 3 and4 only. (4)□ 1, 2, 3and4.
4) Under the terms of the documentary credit, your bank may accept Quality Certificate issued by: 1. Applicant. 2. Beneficiary.
3. third party manufacturer. ,
4. third party inspection company. (1) □ 1 and2 only. (2) □2 and 3 only. (3) □1, 2and4only. (4) □ 1, 3 and4only.
5) Before confirming the documentary credit, your bank should obtain an amendment to the following terms and conditions.'? (1) □drawee party (2) □shipment period (3) □ presentation period
(4) □form of documentary credit
21.1 Please fill the following particulars in a credit form to issue a Freely Negotiable Credit. Issuing Bank: (1) Tokai Bank
Place and date of issue: (2) Tokyo, 4 March, 200 x Beneficiary: (3) EXP Co., Tianjin
Advising Bank: (4) ADV Bank, Tianjin Applicant: (5) IMP Co., Tokyo Credit No. (6) 13579
Amount: (7) USD36,500.00 Valid date: (8) 27 June, 200x Valid place: (9) China