An amendment will generally arise following a request made by the beneficiary to the applicant. This will, as an example, be due to:
If the applicant is in agreement, it will issue an amendment request to the issuing bank. It should be noted that the issuing bank is under no obligation to agree to that request.
However, an issuing bank is bound by the terms of an amendment as of the time it issues it.
When issuing an amendment, care should be taken to ensure that all terms and conditions of the documentary credit that are affected by the amendment are catered for.
This subject is covered in far greater detail within our training module ‘documentary credits in practice' which can be purchased at https://www.tradefinance.training/shop/