Articles Q&A Uncategorized DOES PRESENTING BANK HAVE THE RIGHTS TO CLAIM FROM ISSUING BANK? By Mr Old Man Posted on July 1, 2016 2 min read 2 0 2,536 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr (Quoted from DCPro Discussion Forum 27 – 30 June, 2016) QUESTION Hi Beneficiary presented docs to us despite LC is restricted to another bank. We, acting as a presenting bank, sent the docs to issuing bank which was considered as clean and received the acceptance advice from issuing bank. Can we understand that this acceptance advice override the restriction terms of original LC like amendments and bind issuing bank themselves to pay at maturity to the presenting bank ? Obtaining issuing bank’s A/A, does the presenting bank have the rights to claim from the issuing bank if default may be happened ? Regards, Atsuko (Japan) ——– ANSWER Hi, According to sub-article 6 (a), the presenter (i.e., the beneficiary or the presenting bank making presentation on behalf of the beneficiary) may present the documents directly to the issuing bank bypassing the nominated bank. The issuing bank which accepted the documents and advised the same to the presenting bank must pay at maturity in accordance with the presenting bank’s instructions. As the presenting bank makes presentation on behalf of the beneficiary, it is entitled to claim from the issuing bank on behalf of the beneficiary in case the issuing bank fails to pay at maturity. Kind 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?