Colombian Commercial Code - Decree 410 of 1971 - Book IV - Of Contracts and Corporate Obligations - Title XVII - Of the Bank Agreements - Chapter VI - Letters of Credit - From: Section 1408 to: 1415 Art
CHAPTER VI
Credit Cards
Section 1408 .- Documentary credit means an agreement whereby, on request and in accordance client's
instructions, the bank will either directly or through a correspondent
bank to pay a beneficiary to a sum of money or pay, accept or negotiate
bills of exchange drawn by the beneficiary upon presentation of
documents stipulated in accordance with the terms and conditions.
Section 1409 .- The letter of credit shall contain:
1. The name of the issuing bank and the correspondent, if any;
2. The name of the payee or payer of the letter;
3. The name of the beneficiary;
4. The maximum quantity to be delivered, or which can be rotated drafts by the bank or sending bank;
5. The time within which to make use of credit and
6. And requirements documents to be submitted or be accredited for the use of credit.
Section 1410 .- The documentary credit can be revocable or irrevocable.
The credit will be revocable unless expressly provided otherwise in the letter.
Section 1411 .- The credit may be revoked by the issuing bank at
any time until it has been used by the recipient. Used in part, retain
their character just as the balance.
Section 1412 .- The irrevocable letter of credit is always
expressed in the term within which it can be used. The revocable its
omission will understand that the maximum period of use is six months,
counted from the date of the notice sent to the beneficiary bank to
which the credit is usable.
Section 1413 .- The letter of credit will be transferable when
this is stated explicitly in it. If not expressly prohibited, credit may
be transferred in fractions to the extent of the amount. In turn, only
be used partially when expressly authorized in the letter of credit.
Section 1414 .- The intervention of another bank to the payee
notice of the establishment of a credit does not impose an obligation or
intermediary bank, unless he accepts the task of strengthening the
credit.
In this case, the confirming bank is liable to the beneficiary on the
same terms as the issuer, as of the date of confirmation granted.
Section 1415 .- The letter of credit is independent of the
contract in relation to which the credit is to apply open. Consequently,
neither the issuing bank or the correspondent bank, if necessary, incur
any liability as to the form, sufficiency, accuracy, genuineness,
falsification or legal effect of any document concerning this contract
or as to the appointment, size, weight, quality, condition, packaging,
delivery, or value of goods that represent the documents, nor in terms
of general or particular conditions stipulated in the documentation of
good faith or acts of the shipper or shipper, or any other person, nor
with regard to solvency, reputation, etc.., managers of transportation
or the insurers of the goods.
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