Nominated Bank Asked To Return Doc After They Are Released

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
Sophea
Posts: 5
Joined: Fri May 23, 2014 9:21 am
First Name: Sophea
Last Name: Om
Organization: ACLEDA Bank
Filter: Two Plus Two =: 4
Location: Cambodia

Nominated Bank Asked To Return Doc After They Are Released

Post by Sophea » Thu Jun 05, 2014 12:43 pm

Dear All,
The issuing bank states the refusal notice to the nominating bank ' the bank is holding documents pending further instruction from the presenter'. 2 days latter, applicant wave discrepancies and issuing bank release docs to the applicant.
With this regard, is there any responsibility of the issuing bank if they receipt instruction from the nominated bank to return documents after they release docs to the applicant?

Your comment is highly appreciate.
Regards,

User avatar
picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Yes

Post by picant » Fri Jun 06, 2014 11:07 am

Hi Pal,

the issuing bank stated "HOLD" in its refusal message, instead of "NOTIFY" , By delivering documents to applicant the bank bears the risk that the presenting bank may require back documents or had those sold to another buyer at higher price.
Bad habit.
Other comments appreciated
Ciao

User avatar
gegeeee
Posts: 147
Joined: Fri Jul 05, 2013 5:50 pm
First Name: Gega CITF, CDCS
Last Name: Topadze
Organization: Bank of Georgia
Filter: Two Plus Two =: 4
Location: Tbilisi, Georgia

Issuing Bank Responsibility

Post by gegeeee » Thu Jun 12, 2014 12:46 pm

Hy,

In such situation there are two options:

1) Should not release docs until Nom. bank notifies to do so.
2) Adding that "at the same time issuing bank remains the right to approach the applicant for the waiver of docs".

Other commnets appretiated,

Post Reply