Modes of Payment and Security Quiz

Under CAO 01-2021, who must be notified before forfeiture of a surety bond?

• Legal Service

• Surety company

• Commissioner of Customs

• Applicant

According to BSP regulations, when must Letters of Credit (L/Cs) be opened?

• Any time before the goods arrive

• On or before the date of shipment

• Within 5 days after the date of shipment

• Within 10 days of the invoice date

According to UCP 600, is a credit irrevocable even if it doesn't explicitly state so?

• Yes

• No

• Only if both parties agree

• It depends on the issuing bank

UCP 600 states that a credit is separate from what?

• The banks involved

• The transport company

• The sale or other contract

• The insurance policy

According to UCP 600, what do banks deal with?

• Goods

• Services

• Performance

• Documents

What must a credit state according to UCP 600?

• The mode of transport

• The expiry date for presentation

• The currency of payment

• The Incoterms

What happens if the expiry date of a credit falls on a bank holiday?

• It is voided

• It is extended to the next banking day

• It is extended by one week

• It remains as is

According to UCP 600, are banks liable for business interruptions due to riots?

• Yes

• No

• Only for riots caused by their employees

• It depends on the bank's policy

When does an amendment to a credit take effect?

• Immediately upon issuance

• When the issuing bank receives it

• When the beneficiary accepts it

• After 3 banking days

How many banking days does a bank have to determine if a presentation is complying?

• Three

• Ten

• Five

• Seven