1. Islamic Letters of Credit
  2. Amend Details of an Islamic LC
  3. Procedure to Amend an Islamic LC

7.2 Procedure to Amend an Islamic LC

While in the detailed view of the Islamic LC, you can amend the details of the contract depending on whether:
  • The Islamic LC has been authorized
  • The Islamic LC has not been authorized even once after it was input

Depending on the authorization status of an Islamic LC contract, you can amend its details as follows:

When you have captured the details of a contract and it is not yet authorized, its attributes, financial as well as non-financial, is changed, even if the details have been saved. If accounting entries are involved in the change, the old entries are deleted and new ones passed.

Once a contract has been authorized, additional entries are passed, depending on the nature of amendment.

For each amendment, a new version of the Islamic LC are generated. Different versions of the Islamic LC will also be generated by events like reinstatement and reopening. In the ‘Contract Detailed View screen, you can view the different versions by clicking on back for the previous version and forward on the screen for the next one. When a customer requests for changes in the terms of the contract, the details of the Islamic LC are amended accordingly and an amendment instrument is generated. The amendment of the following details of an Islamic LC, result in the generation of an amendment instrument:
  • An amendment in the Islamic LC amount
  • An amendment in the expiry date
  • A change in the latest shipment date
  • Any change to the free format instructions for the Islamic LC

If there are changes in the terms of the Islamic LC other than IN the amount, the expiry date or latest shipment date, indicate the same in the form of a free format instruction, for the amendment instrument.

In the case of an amendment, you have the option to reissue the Guarantee. If you choose to do so, the REIS (Reissue of Guarantee) event are triggered.

The system checks for any previous amendment. In case no amendment has been performed, the system displays the message as “Do you want to Reissue the Guarantee?”

Click on OK to reissue the Guarantee or click on Cancel to process the amendment of Guarantee.

The system checks if the REIS event is maintained for the product. If the event is maintained, the system does not allow any further change in the Islamic LC contract details apart from FFT fields, which is modified/added but you cannot delete the existing data.

The system creates a new version for the Reissue event and the event inherits all the contract information defined for the authorized BISS event. The version also inherits the information from the subsystem excluding Charges and Commission. No commission is associated with the Reissue event and charges are maintained for the REIS event, which is processed along with the reissue event.

When the Reissue event is authorized, the advices maintained in the REIS event are processed.

Parent topic: Amend Details of an Islamic LC