The nominated commercial bank(s) is (are) to copy all proposed amendments to ADB for its information or approval

The nominated commercial bank(s) is (are) to copy all proposed amendments to ADB
for its information or approval.
Amendments to the Letter of Credit
8.16  The borrower requests ADB’s approval of amendments to the LC as soon as the LC
amendment is obtained from the LC issuing bank (Appendix 8E). A copy of the signed
amendment must be attached to the request.
8.17  ADB communicates its approval to the nominated commercial bank and the borrower
by the form shown in Appendix 8F or by authenticated SWIFT, tested telex, or a
formal letter of approval.
8.18  ADB can allow the borrower, in urgent cases, to send its application for approval to
amend the LC by fax. The message is to include loan number, commitment letter
number, LC number, and nature and reason for the amendment. A copy of the LC
amendment should be attached to the application.
8.19  The message must state that the amendment has been made by the LC issuing bank
and that the application for approval of amendment of the LC and a copy of the LC
amendment are being airmailed to ADB.
8.20  Amendments to the LC for the following need not be submitted to ADB for approval:
(i) extending the expiry date and shipping dates up to the loan closing date, and
(ii) other amendments except those mentioned in Section 8.14. The borrower merely
needs to inform ADB using the standard form (Appendix 8G) and submit a signed copy
of the amendment. This will ensure ADB’s prompt payment of claims received from
the nominated commercial bank.
Limitation of ADB’s Commitment
8.21  A borrower, when requesting a commitment letter, agrees in the application form
that if the US dollar or special drawing right (SDR)
4
equivalent as specified in ADB’s
commitment is exceeded at the time of ADB’s payments due to currency fluctuations,
ADB may use the uncommitted portion of the loan to cover the deficiency. If the
uncommitted portion of the loan is insufficient, the borrower agrees to pay the
remaining obligation promptly under the LC after receiving ADB’s notice.
4
The special drawing right (SDR) is an international reserve asset created by the International Monetary
Fund in 1969 to supplement the official reserves of its member countries. Its value is based on a basket of
four key international currencies—US dollar, yen, pound sterling, and euro. Source: http://www.imf.org/
external/np/exr/facts/sdr.htm