Uncategorized WHETHER DOCUMENTS CAN BE PRESENTED DIRECTLY TO THE ISSUING BANK By Mr Old Man Posted on December 5, 2013 1 min read 24 0 9,837 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, LC states: Field 41D: AVAILABLE WITH WITH BANK N BY NEGOTIATION The beneficiary presents the documents to our bank. Should our bank forward the documents directly to the issuing bank or BANK N? Further information: Beneficiary, BANK N and our bank are domiciled in the same country. Thank you in advance. Best regards, TD ————– ANSWER Hi, If the beneficiary does not intend to negotiate the documents with BANK N and/or BANK N does not agree to act on its nomination, according to Article 6 UCP 600, which says “a credit available with a nominated bank is also available with the issuing bank”, your bank can forward the documents directly to the issuing bank bypassing the nominated bank – BANK N. Please note that your bank in this case is not a nominated negotiating bank but a presenting bank making presentation to the issuing bank on behalf of the beneficiary. 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?