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Comments on Required Amendments to Letters of Credit

Never rely on a commitment from the buyer that a letter of credit can be or will be amended. The seller should always wait for the amendment to arrive before releasing an order pending.  Why?  Because once the goods are shipped and delivered, the buyer has no incentive to amend the letter of credit.  In this situation, the best the creditor can hope is that the seller can arrange for the goods to be returned... even though the seller will pay the cost to have the goods returned.

© 2011 by Michael C. Dennis.  All Rights Reserved