11. In accordance with UCP 600, which of the following alterations can a first beneficiary request a
transferring bank to make under a transferable documentary credit?
A Extend the expiry date.
B Decrease the unit price.
C Decrease insurance cover.
D Extend the period for shipment.
12. A transferable credit can do which of the following?
A Protect the applicant from the risks of loss and error.
B Allow the second beneficiary to obtain payment for complying documents.
C Restrict the right of the second beneficiary to claim payment directly from the nominated
D Permit the supplier to provide the intermediary trader with the security of a documentary
13. A documentary credit calls for a draft at 95 days bill of lading date drawn on the confirming bank.
The documentary credit is available by:
C sight payment.
D deferred payment.
14. A documentary credit pre-advice is issued on 1 March for USD 510,000.00 with the following terms
– Part shipment allowed.
– Latest shipment date 30 April.
– Expiry date 15 May.
On 2 March the applicant requests an amendment prohibiting part shipment and extending the
expiry date to 30 May. In accordance with UCP 600 what MUST the issuing bank do?
A Clarify with the applicant the period for presentation.
B Issue the documentary credit as originally instructed.
C Issue the documentary credit incorporating all the amendments.
D Issue the documentary credit incorporating only the extended expiry date.
15. On 03 January XXXX an irrevocable documentary credit for USD 500,000.00 is confirmed. On 17
January XXXX the confirming bank receives an amendment cancelling the documentary credit
which it advises to the beneficiary. As at 18 January XXXX, what is the liability of both banks?
A Issuing and confirming bank – USD 0.00.
B Issuing and confirming bank USD 500,000.00.
C Issuing bank – USD 0.00 Confirming bank – USD 500,000.00.
D Issuing bank – USD 500,000.00 Confirming bank – USD 0.00.
16. Which of the following statements is correct when an assignment of proceeds has been effected
under a documentary credit issued in accordance with UCP 600?
A The assignee must present complying documents to receive payment.
B The assignee will receive payment of the proceeds directly from the applicant.
C The value of the documentary credit is reduced by the amount of the assignment.
D The beneficiary has assigned its rights to the stated amount of proceeds to the assignee.
17. An applicant has given its counter indemnity to its bankers in connection with a delivery order.
Which of the following statements would NOT be included? The applicant:
A indemnifies the bank against all actions, damages and costs.
B undertakes to accept the underlying documents irrespective of discrepancies.
C gives the issuing bank authority to debit its account for the full value pending inspection of
D undertakes that should the goods form part of a large consignment it will accept that
consignment and pay the full value.