Uncategorized OBLIGATIONS OF CONFIRMING BANK By Mr Old Man Posted on March 7, 2010 1 min read 2 0 2,623 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUERY FROM M.R. Shahbaz Dear Experts, Can confirming bank refuse to negotiate the complying presentation due do disturbance/un-stabilized situation in LC issuing bank's country or it is bound to negotiate the documents? Note: L/C is available / restricted for negotiation at the counters of confirming bank. Regards, —————————– COMMENT Obligation of Confirming Bank Hi, The seller insists on confirmed LC as he expects to cover the risk of non-payment possibly arising from the buyer's country and bank: political events, liquidity problem of foreign bank, economic crisis … Despite the uncertainty concerning the buyer's country and bank, the confirming bank MUST negotiate without recourse or honour any complying presentation. Best regards, Nguyen Huu 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?