Mr Old Man Q&A D/P COLLECTION By Mr Old Man Posted on October 11, 2018 1 min read 0 0 3,939 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Sir, I want to know, if the documents on DP term are sent with clear instruction to release only against Payment. If the collecting bank has released all shipping documents along with endorsed in favor of consignee without collecting payment (good faith), what are the obligations and responsibilities of the collecting bank ? Can the remitting bank claim from the collecting bank? If yes, please advise for platform? Xender ——- ANSWER Hi, URC 522 clearly articulates the responsibilities of a collecting bank when handling a collection subject to those rules. If the instruction is to deliver documents against payment and the collecting bank has delivered without obtaining payment from the drawee, it is responsible for payment. ICC ever gave an opinion on a similar case where the collection instruction was to deliver documents against payment, but the collecting bank has released the documents against partial payment without authorization from the remitting bank. ICC concluded that the collecting bank is responsible for payment of the remaining amount. Kind regards, Mr. Old Man