Q&A Uncategorized COURT ORDER REVISITED By Mr Old Man Posted on May 9, 2016 1 min read 0 0 2,310 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION With reference to the refusal I have a question. X Bank received documents from Y Bank under LC issued by them. The documents are complied as per the terms of the Letter of credit . Before the due date the applicant brings a court order instructing the X Bank not to pay under the LC . Based on the same X Bank sends a notice to Y Bank in this regards . My question is: Is X Bank right in refusing to pay the bill? Under which clause X Bank has got the right not to pay the bill? TV RAJESH ———- ANSWER Hi, Court injunction or court order is a matter of local law not covered in the UCP. Local banks must comply with such a court order. 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?