Uncategorized PARTIAL PAYMENT By Mr Old Man Posted on May 8, 2015 1 min read 2 0 3,298 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, The presenting bank presented the documents to the issuing bank for payment. However, the documents did not comply. Therefore, the issuing bank refused the documents and advised the applicant of the same. The applicant informed the issuing bank that he would agree to pay half of the claimed amount. Does the issuing bank need to obtain the beneficiary’s consent? Thank you. TD. ———– ANSWER Hi, Please note that if the documents presented are discrepant, the issuing bank may refuse to honour even when the applicant agrees to waive the discrepancies. In case the issuing bank accepts the waiver of the applicant and agrees to pay, the issuing bank must pay the claimed amount in full. It is not in position to pay part of the claimed amount at the applicant’s request without the presenter’s consent. So, if the issuing bank intends to pay part of the claimed amount at the applicant’s request, it should obtain the presenter’s consent or agreement via authenticated swift message. Kind regards, Mr. Old Man
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?