| The available period of the credit of May 5th and the indicated shipping date was May 4th. The company K tried to NEGO by receiving original B/L and ship on May 3rd, but May 3rd is Saturday and it was late already. May 4th is Sunday and may 5th is bank off day so NEGO was made on May 5th inevitably. The document was presented to a opening bank indicating the Article 44 of U.C.P regulation about the extended available period but the bank rejected to meet payment for the expire date.
Case study
1. Extension of Expiry date in a credit
According to the 17 of U.C.P., the available case to extend available period as to unavoidable cause is when a bank is closed for business transaction and the extension is possible until the very next available banking day. (The Sub-Article 44(a) of U.C.P)
2. Extension not allowable with a credit
Available period may be extended but not with shipping date. So a shipping date can not be changed unless the condition with a credit is changed.
Caution
When available period with credit is extend due to a bank close, not because of a unavoidable cause, such wording must be indicated presented when negotiating documents.
"The documents was presented within the time limits extended in accordance with the Sub-
Article 44(a) of the uniform customs and practice for Documentary credit 1993 Revision I.C.C pub No.500"
For this case, the opening bank rejecting to make payment seems irrelevant.
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44-Extension of Expiry Date
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