This refers to a Letter of Credit when the words “documents acceptable as presented” are used.
Typically this means that only 3 elements will be examined:
In practice, in the event that there is an LC and it calls for the following documents:
To explain the above, the only requirement under such an wording (undefined in UCP600 and as under ISBP A19 g), is for the bank to show that the presentation has been made within expiry and the amount of drawing does not exceed the available amount under the LC. No other examination need be made.
The beneficiary may only need to present the packing list, and the document examiner will check that 1) it is a the correct document (the packing list) and 2) the presentation is made within the expiry date of the LC and 3) the drawing amount is within that which is available under the LC. However, this does not fully express the intention of the issuer and so to avoid any miscommunications the issuer will usually explain in clear language what they want to achieve. If not, then the definition will be cast wide and it will mean that it is impossible for the beneficiary not to comply with the intended requirements of the issuer.
Find out more about bonds, guarantees and letters of credit here.