An amendment to a Standby LC signifies any change made to the terms of an SBLC after it has been authorized. An amendment can be made at any time after an SBLC has been authorized and before its expiry date.
Procedure for Amending LC
From the Summary page of a deal, click Amend icon to amend the SBLC.
(Also available from the ellipsis (...) menu for a card on the home page)
All the details entered for the SBLC will be displayed. You can amend the details of the contract.
When a customer requests for changes in the terms of the contract, the details of the LC are amended accordingly, and an amendment instrument is generated. Amending any of the following details of an SBLC, will result in the generation of an amendment instrument:
- An amendment in the amount (Increase/decrease)
- An amendment in the expiry date
- A change in the latest shipment date
- Any change to the free format instructions for the Standby LC
If there are changes in the terms of the SBLC other than in the amount, the expiry date or latest shipment date, these can be handled via a free format instruction in the Amendment details Tab.
Indicating Change of Value for a Field
When the SBLC amount is being changed, the new amount of the SBLC should be indicated after the amendment.
For example, The SBLC amendment instrument will have both the old and new values. The original LC amount was USD 10,000 and you want to change it to USD 75,000.
In the basic details tab enter the 65,000 in the increase amount field The system will calculate the New overall amount (and vice versa, using the decrease amount field to reduce the overall).
For the expiry date or the latest shipment date, you should enter the new date in their respective fields and similarly for other fields to amend.
The below GIFs show an example with Four eye check, firstly for Processor making the Amendment and then the Approver signing it.