Can Issuing Bank Pay Without Receiving The Second Set Of Doc

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
SREEJA
Posts: 10
Joined: Tue Jan 20, 2015 9:41 pm
First Name: SREEJA
Last Name: BALAKRISHNAN
Organization: Bank
Filter: Two Plus Two =: 4
Location: India

Can Issuing Bank Pay Without Receiving The Second Set Of Doc

Post by SREEJA » Wed Jan 21, 2015 6:45 am

LC STATES PRESENTATION IN TWO LOTS

nominated bank send first lot of documents to the issuing bank after negotiating



question 1: can the issuing bank make payment to nominated bank without receiving the second set?

question 2:if "yes" and if the copy of invoice and certificate of origin is discrepant(in the second set) can the issuing bank recall the payment?

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

Issuing Bank instructions

Post by picant » Thu Jan 22, 2015 3:37 am

Hi Pal,

due to the availability of the l/c, the risk of lost in transit, is for the beneficiary or for the issuing bank/applicant.
In your case the issuing bank requires the sending of documents in two lots, so the first lot suffice to avail the l/c.
Naturally the covering letter must indicate that the balance of documents will be remitted asap.
Frankly first lot contains all documents required, less one fold that follows,so it is very difficult to find second sending with
copies of documents different from first one, but not excluding this possibility.
Other comments appreciated
Ciao

hardy2175
Posts: 34
Joined: Mon Jun 13, 2011 12:23 pm
First Name: hardy
Last Name: singh
Organization: bank
Filter: Two Plus Two =: 4

Docs sent in two sets

Post by hardy2175 » Mon Jan 26, 2015 4:42 pm

If the LC requires full set of BL , 2/3 is sent with the first set of docs and 1/3 by the second set . Can the docs be honoured just after receiving the first set.

RANGANAA
Posts: 6
Joined: Wed Jan 28, 2015 1:19 pm
First Name: Anbazhagan
Last Name: R
Organization: ANZ
Filter: Two Plus Two =: 4
Location: India

NOed

Post by RANGANAA » Wed Jan 28, 2015 1:36 pm

Unless full set BL is received by the issuing bank paymen will not be honoured

IJTUDU
Posts: 57
Joined: Fri Feb 11, 2011 8:25 pm
First Name: ISAAC
Last Name: TUDU
Organization: Bank
Filter: Two Plus Two =: 4
Location: INDIA

Not compliant

Post by IJTUDU » Wed Jan 28, 2015 6:59 pm

hardy2175 wrote:If the LC requires full set of BL , 2/3 is sent with the first set of docs and 1/3 by the second set . Can the docs be honoured just after receiving the first set.
No - as the documents are not compliant since full set of BL has not been received as stipulated in the LC.

Regards,

Isaac Tudu

User avatar
harlanadinata
Posts: 13
Joined: Wed Jan 21, 2015 7:23 am
First Name: ADINATA
Last Name: HARLAN
Organization: BNI 46
Filter: Two Plus Two =: 4
Location: INDONESIA

BL in two lots

Post by harlanadinata » Thu Jan 29, 2015 4:18 pm

IJTUDU wrote:
hardy2175 wrote:If the LC requires full set of BL , 2/3 is sent with the first set of docs and 1/3 by the second set . Can the docs be honoured just after receiving the first set.
No - as the documents are not compliant since full set of BL has not been received as stipulated in the LC.

Regards,

Isaac Tudu

Yeah, agree with Isaac

Post Reply