Experts view needed on Nominated and Issuing bank roles

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ejesha
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Experts view needed on Nominated and Issuing bank roles

by ejesha » Wed Jan 03, 2018 4:14 pm

Hi dear experts,

Please kindly explain or share your expert view

We are issuing bank under LC and bank ABC is nominated bank. ABC bank sent us documents which we see that in documents there is discrepancy. ABC bank already payed for this mentioned documents.

1) Which action will be right in your opinion. 1)If we receive that documents and just give them to applicant, or 2) if we receive that documents and fetch out discrepancies and insist on either waiving discrepancies by applicant or replacing them by beneficiary.

2) Second question. If we donot fetch out discrepancies and just give them to applicant, can applicant complain to us that we do not check the documents.

3) Please explain the realations in possible full explamation.

thank you for patience and regards,

Ejesha

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picant
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Re: Experts view needed on Nominated and Issuing bank roles

by picant » Fri Jan 05, 2018 12:19 pm

Hi Pal,

first of all : Is the discrepancy true, under wich UCP Article?

Actions , IMHO,

-send advice of refusal to nominated bank, indicating the MT734 code Notify.
-wait for the waiver from applicant,
-in case of a true discrepancy, if your applicant does not provide you a waiver, inform the
presenting nominated bank that the payment was not due and ask for reimbursement.
-the nominated bank, having paid wrongly, is obliged to refund you.
-Naturally it may take some days/months.
Other comments appreciated
Ciao

SKP
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Re: Experts view needed on Nominated and Issuing bank roles

by SKP » Wed Jan 10, 2018 3:31 pm

picant wrote:
Fri Jan 05, 2018 12:19 pm
Hi Pal,

first of all : Is the discrepancy true, under wich UCP Article?

Actions , IMHO,

-send advice of refusal to nominated bank, indicating the MT734 code Notify.
-wait for the waiver from applicant,
-in case of a true discrepancy, if your applicant does not provide you a waiver, inform the
presenting nominated bank that the payment was not due and ask for reimbursement.
-the nominated bank, having paid wrongly, is obliged to refund you.
-Naturally it may take some days/months.
Other comments appreciated
Ciao
hello experts, i agree with your views
however, can we claim interest on paid amount at the time getting refund from nominated bank?
secondly, if applicant is ready to accept documents with discrepancy in lie of charges a/c discrepancy penalty then,
how we as issuing bank recover such expenses from Nominated bank.
thanks you. expecting your valuable views soon.
rgds,skp

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