Uncategorized WHERE NEW DISCREPANCIES ARE FOUND ON RE-PRESENTED DOCUMENTS By Mr Old Man Posted on October 5, 2011 3 min read 9 0 3,176 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr by Old Man on Wednesday, October 5, 2011 at 4:07pm QUERY FROM HM Dear Mr.Old Man, I was confused by this following situation, could you kindly clarify this for me: The docs was refused due to the discrepancies. As per instruction of the applicant, we sent these docs to the Ben for correction.After that, we receiced the new one which were corrected the some discrepancies but not all raised in our notification to the applicant. I know the issuing bank should give only single notice to the applicant. So in this case, should we do to advise the discrepancies not be corrected to the applicant? Thank you very much for your help.————— ANSWER Hi, The principle “single notice of refusal” in sub-article 16(c) applies whether the documents are a first presentation or a presentation on the basis of corrected documents. That is to say, if the re-presented documents contain new discrepancies (including discrepancies cited in the first notice but not corrected), the issuing bank that decides to refuse to honour must give a further (single) notice to that effect to the presenter no later than the close of the fifth banking day following the day of presentation. Please note that when an issuing bank determines that a presentation does not comply, it may in its sole judgment approach the applicant for a waiver of the discrepancies. As to your case, you may notify the applicant of the further discrepancies of the re-presented documents. But don’t forget to give a further notice of refusal to the presenter within 5 banking days from the date of receipt of the re-presented documents. Please note that failure to give such a further notice within the five day rule would render your bank liable to honour the documents. Best regards,Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?