DRAFTS RULE

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likalika83
Posts: 5
Joined: Tue Sep 19, 2017 6:50 am
First Name: lika
Last Name: lika
Organization: Bank
Filter: Two Plus Two =: 4
Location: taipei

DRAFTS RULE

Post by likalika83 »

HI ALL,

OUR BANK ( ISSUING BANK ) RECEIVED A NEGO DOCUMENTS, WE FOUND THE DRAFTS
(1) PRESENTED ONLY 1 COPY ( WITHOUT 2/2 )
(2) AMOUNT ONLY SHOWN IN FIGURES ( WITHOUT IN WORDS ).
.
EVEN THE L/C DOES NOT MENTION " 1 COPY / AMOUNT IN WORDS ",
CAN WE TREAT THIS 2 ITEMS AS DISCREPANCIES ?
.
TKS FOR YOUR KINDLY ADVISED.
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picant
Posts: 1963
Joined: Wed Aug 20, 2008 1:49 pm

Re: DRAFTS RULE

Post by picant »

Hi Pal,

normally drafts are not subject to discrepancy, first as they are not required as document, second being drawn on issuing bank they are not delivered to applicant. As per ISBP 745 para B18 a) a credit must not be issued available by a draft drawn on the applicant;
b)however, when a credit requires the presentation of a draft drawn on the applicant as one of the required documents, it is to be examined only to the extent expressely stated in the credit, otherwise according to UCP 600sub-article 14(f).
Other comments appreciated
Ciao
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