Uncategorized WHERE THE BILL OF LADING IS ENDORSED BY A PARTY OTHER THAN THE PARTY TO WHOSE ORDER IT IS MADE OUT By Mr Old Man Posted on July 15, 2015 1 min read 0 0 2,029 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Not far from my home. QUESTION Dear Mr. Old Man, I have a very urgent case that needs your opinion. B/L made out to the order of Bank A and notify Applicant. However, it is endorsed by Bank B (the Beneficiary’s bank) by mistake. The issuing bank raised the discrepancy. Is the discrepancy valid? Thank for your support PTH —— ANSWER Hi, By appearance it appears to be a discrepancy. However, the issuing bank should not raise such a discrepancy. I asked my friend who is working for a shipping company whether the shipping company would accept the B/L if Bank A cancelled Bank B’s endorsement and made its duly endorsement, and my friend said YES reasoning that the endorsement made by Bank B was not valid. Kind regards, Mr. Old Man ————- P/s: The question also received from Antonio Picchi (an Italian LC expert) a comment which said “No discrepancy. Endorsement not valid. Only Bank A may endorse B/L”.
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?