1. Islamic Letters of Credit
  2. Islamic LC Transfer
  3. Transfer Islamic LC
  4. Note on Transfers from Import and Export Islamic LCs
  5. Amendment In Transferred LC

9.2.1.3 Amendment In Transferred LC

During Life cycle of the Transferred LC, LC amount can be modified. When LC amount/Tolerance percentage is modified from LC Amendment Input Screen(LCDAMEND) ,following points will be applicable.

Amendmention Initiation with beneficiary confirmation:
  1. Amount Increase Case:
    1. Amendment Initiation - AMNV :
      1. Corresponding amount will be decreased in Parent LC.
      2. If goods is transferred, corresponding goods units will also be reduced.
      3. Transferrable in Parent LC will be reduced if goods is transferred.
    2. Confirmation Authorization - ACON :

      TRAM event will be triggered in Parent LC and contingent reversal will be triggered through that event.

    3. Rejection - AREJ:
      1. Corresponding amount will be increased in Parent LC.
      2. If goods is transferred, corresponding goods units will be increased.
      3. Transferrable in Parent LC will be increased if goods is transferred.
  2. Amount decrease Case:
    1. Amendment Initiation - AMNV : No changes in Parent LC
    2. Confirmation Authorization - ACON :
      1. Corresponding amount will be increased in Parent LC.
      2. If goods is transferred, corresponding goods units will also be increased.
      3. Transferrable in Parent LC will be increased if goods is transferred.
      4. TRAM event will be triggered in Parent LC and contingent reversal will be triggered through that event.
Following validations will be available in transferred LC.
  1. System will not allow to increase transferred LC amount more than Parent LC amount.
Following validations/overrides will be available in parent LC.
  1. During amendment with beneficiary confirmation, System will allow to reduce the LC amount below available amount with override. On confirmation, it will show appropriate error.
  2. During amendment without beneficiary confirmation/amendment confirmation , System will show appropriate error if LC amount below available amount.
  3. If there is underlying Transferred LC with substitution of document, then override will be provided for the user.
Following Points are also supported.
  1. On reversal of transferred LC amendment, corresponding TRAM event in parent LC will also be reversed through RTRA event.
  2. Charges and Taxes are not supported for TRAM and RTRA events.

Parent topic: Note on Transfers from Import and Export Islamic LCs