A. WAREHOUSE RECEIPTS LAW (Act No. 2137)
1. WHAT IS THE PURPOSE/S OF A WAREHOUSE RECEIPT OR DOCUMENT OF
TITLE TO GOODS?
A WAREHOUSE RECEIPT IS A DOCUMENT THAT PROVIDES PROOF OF
OWNERSHIP OF COMMODITIES THAT ARE STORED IN A WAREHOUSE, VAULT,
OR DEPOSITORY FOR SAFEKEEPING.
WAREHOUSE RECEIPT ALSO GUARANTEE EXISTENCE AND AVAILABILITY OF A
COMMODITY OF A PARTICULAR QUANTITY, TYPE, AND QUALITY IN A NAMED
STORAGE FACILITY. IT MAY ALSO SHOW TRANSFER OF OWNERSHIP FOR
IMMEDIATE DELIVERY OR FOR DELIVERY AT A FUTURE DATE. RATHER THAN
DELIVERING THE ACTUAL COMMODITY, NEGOTIABLE WAREHOUSE RECEIPTS
ARE USED TO SETTLE EXPIRING FUTURE CONTRACTS.
WAREHOUSE RECEIPTS MAY ALSO INDICATE OWNERSHIP OF INVENTORY
GOODS AND/OR UNFINISHED GOODS STORED IN A WAREHOUSE BY
MANUFACTURER OR DISTRIBUTOR.
2. WHAT ARE THE LIABILITIES OF A WAREHOUSEMAN?
1. LIABILITY TO STAMP DUPLICATE ON COPIES OF NEGOTIABLE RECEIPT
2. LIABILITY TO PLACE NON-NEGOTIABLE OR NOT NEGOTIABLE ON THE NOT
NEGOTIABLE RECEIPT
3. LIABILITY FOR MISDELIVERY OF THE GOODS
4. LIABILITY TO EFFECT CANCELLATION OF A NEGOTIABLE RECEIPT UPON
DELIVERY OF THE GOODS
5. LIABILITY TO ISSUE RECEIPT FOR NON-EXISTING GOODS OR
MISDESCRIBED GOODS
6. LIABILITY TO TAKE CARE OF THE GOODS
7. LIABILITY TO GIVE NOTICE IN CASE OF SALE OF GOODS TO SATISFY THE
LIEN OR BECAUSE THE GOODS ARE PERISHABLE OR HAZARDOUS
B. LETTERS OF CREDIT
1. WHAT IS THE PURPOSE/S OF A LETTERS OF CREDIT (LC)?
A LETTER OF CREDIT OR "CREDIT LETTER" IS A LETTER FROM A BANK
GUARANTEEING THAT A BUYER'S PAYMENT TO A SELLER WILL BE RECEIVED
ON TIME AND FOR THE CORRECT AMOUNT. IN THE EVENT THAT THE BUYER IS
UNABLE TO MAKE A PAYMENT ON THE PURCHASE, THE BANK WILL BE
REQUIRED TO COVER THE FULL OR REMAINING AMOUNT OF PURCHASE. IT
MAY BE OFFERED AS A FACILITY.
DUE TO NATURE OF INTERNATIONAL DEALINGS, INCLUDING FACTORS SUCH
AS DISTANCE, DIFFERING LAWS IN EACH COUNTRY, AND DIFFICULTY IN
KNOWING EACH PARTY PERSONALLY, THE USE OF LETTERS OF CREDIT HAS
BECOME A VERY IMPORTANT ASPECT OF INTERNATIONAL TRADE.
2. WHO ARE THE PARTIES IN A LETTER OF CREDIT TRANSACTION?
 BUYER
 ISSUING BANK
 SELLER
 ADVISING BANK
 CONFIRMING BANK
 PAYING BANK
3. WHAT IS THE "FRAUD EXCEPTION" IN AN LC tRANSACTION?
IT PROVIDES THAT THE UNTRUTHFULNESS OF A CERTIFICATE
ACCOMPANYING A DEMAND FOR PAYMENT UNDER A STANDBY LETTER OF
CREDIT MAY QUALIFY AS FRAUD SUFFICIENT TO SUPPORT AN INJUNCTION
AGAINST PAYMENT.
C. RESEARCH:
FIND AND READ SAMPLES OF LETTERS OF CREDIT. MAKE ONE LC AND PUT
THE DETAILS THAT YOU WANT, INCLUDING THE SUBJECT-MATTER, THE
AMOUNT AND YOUR NAME AS PARTY OR SIGNING OFFICER FOR ANY PARTY
TO THE LC.
INTERNATIONAL BANKING GROUP
Megabank Corporation
P.O. BOX 1000, ATLANTA, GEORGIA 30302-1000
TELEX NO. 1234567
SWIFT NO. MBBABC 89
IRREVOCABLE LETTER OF CREDIT
OUR ADVICE NUMBER: EA0000000091
ADVICE DATE: 12NOV2020
AMOUNT
ISSUE BANK REF: 3315/ABC/55674
P25, 000
EXPIRY DATE: 28DEC2020
BENEFICIARY:
APPLICANT:
THE WALTON SUPPLY CO.
HHB HONG KONG
2356 SOUTH N.W. STREET
34 INDUSTRIAL DRIVE
ATLANTA, GEORGIA 30375
CENTRAL HONG KONG
WE HAVE BEEN REQUESTED TO ADVISE TO YOU THE FOLLOWING LETTER OF
CREDIT AS ISSUED BY:
THIRD HONG KONG BANK
1 CENTRAL TOWER
HONGKONG
PLEASE BE GUIDED BY ITS TERMS AND CONDITIONS AND BY THE FOLLOWING:
CREDIT AS AVAILABLE BY NEGOTIATION OF YOUR DRAFT(S) IN DUPLICATE
AT SIGHT FOR 100 PERCENT OF INVOICE VALUE DRAWN ON US ACCOMPANIED
BY THE FOLLOWING DOCUMENTS:
1. SIGNED COMMERCIAL INVOICE IN 1 ORIGINAL AND 3 COPIES.
2. FULL SET 30 OCEAN BILLS OF LADING CONSIGNED TO THE ORDER OF
THIRD HONG KONG BANK, HONG KONG NOTIFY APPLICANT AND MARK
FREIGHT COLLECT.
3. PACKING LIST IN 2 COPIES.
EVIDENCING SHIPMENT OF: 6000 PINE LOGS-WOLE-9 TO 13 FEET
FOB SAVANNAH, GEORGIA
SHIPMENT FROM: SAVANNAH, GEORGIA
TO: HONG KONG
LATEST SHIPPING DATE: 16DEC2020
PARTIAL SHIPMENTS AND TRANSHIPMENT NOT ALLOWED
ALL BANKING CHARGES OUTSIDE HONGKONG FOR BENEFICIARY ACCOUNT.
DOCUMENTS MUST BE PRESENTED WITHIN 21 DAYS FROM B/L DATE.
AT THE REQUEST OF OUR CORRESPONDENT, WE CONFIRM THIS CREDIT AND
ALSO ENGAGE WITH YOU THAT ALL DRAFTS DRAWN UNDR AND IN
COMPLIANCE WITH THE TERMS OF THIS CREDIT WILL BE DULY HONORED BY
US.
PLEASE EXAINE THIS INSTRUMENT CAREFULLY. IF YOU ARE UNABLE TO
COMPLY WITH THE TERMS OR CONDITIOS, PLEASE COMMUNICATE WITH
YOUR BUYER TO ARRANGE FOR AN AMENDMENTS.
ISSUED BY: MEGABANK CORPORATION
ADDRESS: P.O. BOX 1000 ATLANTA, GEORGIA
PHONE: 30302-1000
BY: EZA JOY CLAVERIAS
BRANCH MANAGER
NOTARY PUBLIC
DATE: DECEMBER 28, 2020