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FORCE MAJEURE AND DISHONOUR

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Dear All,

I would like to share with you a Q&A on DCPro Forum.
Hope it provokes your thoughts.

Best regards,
Mr. Old Man
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FORCE MAJEURE AND DISHONOUR
GSHAM – Singapore Posted 27 Dec 12 |

After the issuing bank has received the documents, a force majeure event prevents the issuing bank from checking the documents in a timely manner. As a result the issuing bank fails to send a notice of dishonour in accordance with article 16. In such case is the issuing bank precluded from dishonour in accordance with article 16(f)?
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N.H.Duc – Viet Nam Posted 28 Dec 12 |

Hi,

The issuing bank has a maximum of five banking days following the day of presentation to determine if the presentation is complying and give a notice of refusal if the presentation is not complying.

I would treat force majeure days as non-banking days. Upon resumption of its business, if the issuing bank determines that the presentation is not complying and decides to refuse, it can give a notice of refusal to the presenter provided such a notice is given within five banking day rule with force majeure days excluded from calculation.

Best regards,
N.H.Duc

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