| Commentary

19 Application

| Commentary

19 Application

The applicant for credit should ensure that the instructions to the bank are complete and precise1; if the instructions are ambiguous as to the documents to be tendered by the beneficiary or are capable of covering more than one document, the issuing bank is not in default if it acts upon a reasonable meaning of the ambiguous expression or accepts any kind of document which fairly falls within the wide description used2. The application often provides for an indemnity by the applicant for credit for the amount of the credit and gives the issuing

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