Uncategorized DOCUMENTS ARE PRESENTED DIRECTLY TO THE ISSUING BANK BYPASSING THE NOMINATED CONFIRMING BANK By Mr Old Man Posted on March 12, 2010 2 min read 0 0 2,184 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUERYMojca P – Slovenia Posted 08 Jan 10 | Hello all, I would like to hear your opinion regarding the following: We (as a 2nd dvising/beneficiary's bank) received LC issued by a Columbian Bank and advised to us through another European bank, which added their confirmation to LC, subject to presentation of complying documents to their counters. The beneficiary then presented us documents, but the presentation did not comply due to ''late presentation'' and other discrepancies. In accordance with beneficiary's authorization, we avoided the nominating (confirming) Bank and sent documents for approval directly to issuing bank. I am interested in hearing what the practice in your bank is in similar situations. Would you send discrepant documents to the nominating bank anyway? Thank you for your comments.Mojca ———————————- COMMENT N.H.Duc – Viet Nam Posted 09 Jan 10 | Mojca, By adding confirmation, the confirming bank undertakes to honour and will only honour if the documents presented comply with the credit terms and conditions. If the documents do not comply and your bank forwards the documents to the confirming bank on approval basis, the confirming bank must also ask for the issuing bank’s approval to honour the documents. A credit available with a nominated bank is also available with the issuing bank. To save the time, like your bank many banks choose either (i) to forward the documents directly to the issuing bank on approval basis or (ii) to ask for the issuing bank’s approval and instruction on where to forward the document to. Regards,N.H.Duc …
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?