Uncategorized WHERE THE NOMINATED BANK DELAYS IN FORWARDING THE DOCUMENTS TO THE ISSUING BANK By Mr Old Man Posted on January 27, 2015 2 min read 0 0 2,397 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Is the issuing bank bound to honor in such case where the negotiating bank states in the covering schedule that the documents are complying which they forward to issuing bank 10 days after 5 banking days ? ——— ANSWER Hi, There are no articles in UCP 600 dealing with the time period within which the nominated bank must forward the documents presented by the beneficiary to the issuing bank. However, please note that the sooner the nominated bank forwards the documents to the issuing bank, the sooner it receives the payment/reimbursement from the issuing bank. It is obvious that no negotiating bank wants to delay sending the documents to the issuing bank unless it mislays the documents somewhere in its office for some time. What if the beneficiary in question presented the documents to the nominated bank within the stipulated period for presentation and LC validity and the nominated bank mislaid the documents, hence, led to such a delay in forwarding the documents to the issuing bank? The answer is that the issuing bank is bound to pay if the documents otherwise complied. As Gary Collyer said, the beneficiary should not be penalized for the error on the part of the nominated bank. Kind regards, Mr. Old Man Mr. Old Man