1. Identify the following parties.
* Applicant. The applicant is Kandalama Hotels Limited.
* Beneficiary. The beneficiary is CMV Shaper Finish Inc.
*Advising Bank. The advising bank is JP Morgan Chase
* Issuing Bank. The issuing bank is the Hatton National Bank.
* Confirming Bank. The confirming bank is Citibank.
2. What are theshipping terms?
i. Manually signed commercial invoices in 7 copies certifying goods of USA origin.
ii. Full set of clean on board bill of lading marked freight pre-paid issued to the order ofHatton National Bank Ltd. Notify applicant indicating LC No L05002052183
iii. Packing List / Weight List
iv. Certificate of USA origin indicating that the merchandise shipped included allcomponents of the items shipped is as per proforma invoice dated 20th September 2005 (Reference No DETO080905)
v. Certificate of warranty covering a period of one rear for factory defective parts from thedate of installation as per proforma invoice dated 20th September 2005 (Reference No DETO080905) by the manufacturer of said goods CMV Shaper Finish Inc., USA.
vi. Insurance policy / Certificatein duplicate in assignable form endorsed in blank covering institute cargo clauses (A) Institute War Clauses (Cargo) Institute Strike Clauses (Cargo) for full CIF value plus 10 percent covering fromsuppliers warehouse to applicant´s warehouse in Kandalama, Sri Lanka including transshipment risks in the event of transshipment, claims payable in Colombo irrespective of percentage.
vii. Copy ofthe proforma invoice dated 20.09.2005 (Reference No DETO080905).
3. When does the risk of loss pass from the seller to the buyer? Where? Are there any conflicts between the letter of Credit termsand the referenced proforma invoice? If so, what can be done to resolve this problem?
* The risk of loss does not pass until the seller has delivered it to that destination.
* The risk of...