Home Mr Old Man Q&A RETURN OF DOCUMENTS

RETURN OF DOCUMENTS

2 min read
2
0
1,828

DSC02803

QUESTION

Dear Mr. Old Man,

We have a case that needs your advice.

We, the issuing bank, have received the documents of which all originals of the insurance certificates are not endorsed in blank as required. The applicant informs us that the beneficiary has agreed to replace the discrepant insurance certificates and requests us to return all originals of the insurance certificates (not all the documents) to the presenter.

Our questions:

  1. Can we act in accordance with the applicant’s request?
  2. If yes, should we return all originals of the insurance certificates or all the documents to the presenter?

Thank you in advance.

Best regards,

Brandy

——

ANSWER

Hi,

  1. No. The applicant is not a party to the LC; hence, the issuing bank is not obliged to return part of or all documents to the presenter as per the applicant’s instruction or request.
  1. If the documents are not complying and the issuing bank decides to refuse to honour, it should give a notice of refusal to the presenter in accordance with UCP 600 sub-article 16 (c)(iii). If option (d) is stated in the notice of refusal, the issuing bank can return all documents as received to the presenter.

The issuing bank can return the discrepant insurance certificates to the presenter as per the presenter’s instruction when the presenter has presented the new insurance certificates to replace the discrepant ones.

Kind regards,

Mr. Old Man

Load More Related Articles
Load More By Mr Old Man
  • WHERE LC INCORPORATES CNI DELLIVERY TERM

    QUESTION Dear Sir, We get lots of import LC requests asking us to incorporate Incoterms CN…
  • PERIOD FOR PRESENTATION

    QUESTION Hello Sir, I read your articles online and your answers to some questions regardi…
  • FRAUD OR NOT?

    QUESTION Dear anh Duc, Em doc duoc blog cua anh giai dap nhieu dieu hay ve thanh toan quoc…
Load More In Q&A

2 Comments

  1. T V RAJESH

    May 8, 2016 at 7:42 pm

    With reference to the refusal i have a question

    X bank received a documents from Y bank under LC issued by them . The documents are complied as per the terms of the Letter of credit . Before the due date the applicant brings a court order instructing the X bank not to pay under the LC . Based on the same X bank sends a notice to Y bank in this regards . My question is

    1. Is X bank right in refusing to pay the bill
    2.Under which clause X bank has got the right not to pay the bill

    Reply

    • mroldman

      May 9, 2016 at 8:25 am

      Hi,

      Court injunction or court order is a matter of local law not covered in the UCP. Local banks must comply with such a court order.

      Kind regards,
      Mr. Old Man

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

ICC GIẢI THÍCH VỀ CỤM TỪ “KHÔNG CHẬM TRỄ” TRONG UCP 600

ICC giải thích về cụm từ “không chậm trễ” trong UCP 600 (thitruongtaichinhtien…