DCW Monthly: October 2026
This month’s content follows a standby LC past issuance and asks a practical question: once the instrument is out
2 min read
The ruling in Weifang JS Trading Co. v. Euro Exim Bank centered on treatment of the Field 47A payment term wording:
“The Issuing Bank will effect payment on due date under the credit to the Beneficiary Bank in accordance with their instruction upon receipt of documents fully complying with LC terms and upon payment from Applicant.”
- Does the Issuing Bank’s proviso “upon payment from Applicant” violate the fundamental purpose of the LC and is it ambiguous such that it should be construed against the Issuing Bank?, or
- Is the condition clear and the Beneficiary is responsible for reviewing the LC text to ensure it is satisfied with the terms & conditions before accepting the LC?
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