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A sight Lc has been issued but the applicant wants to change the sight lc to be a ussance lc. Is that possible?

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Question added by wangeci mu
Date Posted: 2016/06/16
Ali Mahdi Salih Alassadi
by Ali Mahdi Salih Alassadi , HEAD OF CONTRACTS AND DOCUMENTARY CREDIT SECTION , MISSAN OIL COMPANY

the applicant can not change lc from sight to ussance without approval of beneficiary.

Shehab Gomaa
by Shehab Gomaa , Head of IT Business Analysis Unit , Alexbank

Yes it is possible to do the LC change type where 2 changes will be there; you will have to reverse the contra / liability posted at time of sight issuance and post a new contra / liability of the usance LC. Also, the new usnace type linked to a different credit facility, you have to refund the sight credit facility and book from the new usance credit facility.

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