Uncategorized CONFIRMING BANK VS NON-CONFIRMING NOMINATED BANK By Mr Old Man Posted on November 13, 2014 1 min read 2 0 2,242 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Monkey Mountain, Danang 1972 … and now 2014 QUESTION Dear Mr. Old Man, I have another question regarding art 12a of the UCP. What is the difference in status between the confirming nominated bank and the non-confirming nominated bank if they both agree to act under their nomination? Thank you very much in advance. Zeev Weizman ———- ANSWER Hi, By nominating a bank, whether it is a confirming bank or a non-confirming bank, to honour or to negotiate the complying documents, the issuing bank undertakes to reimburse the nominated bank that has honoured or negotiated a complying presentation and forwarded the documents to the issuing bank. So, the nominated bank that has honoured or negotiated a complying presentation is entitled to reimbursement from the issuing bank irrespective of whether it is a confirming bank or a non-confirming bank. The non-confirming nominated bank that has acted on its nomination enjoys the same protection status as the confirming bank. Kind regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?