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Obligation of collecting bank to protest

Posted: Wed May 24, 2017 1:09 pm
by MarMur
Dear experts,

I would be grateful if you could answer the following questions regarding documentary collection:

1.In collection instruction it is stated "protest non-payment". If the collecting bank presents the documentÕ½ to the drawee and the drawee refuses the documents, is the collecting bank obliged to protest??
2.The instruction says "charges are for the drawee and cannot be refused". If the drawee refuses the documents what shall the collecting bank do with its charges?

Many thanks in advance

URC 522

Posted: Sat Jun 03, 2017 1:38 pm
by picant
Hi Pal,


the condition is clear, you have to protest following your domestic law. On receipt of documents
you may ack them and ask for the amount necessary to afford protest fee.
Same with charges for drawee, if the collecting bank has no way to be reimbursed by the drawee, it will ask refund from the remitting bank.
Art 21 e 24 URC 522.
Ciao

Re: Obligation of collecting bank to protest

Posted: Wed Oct 04, 2017 8:47 pm
by dv01001
i just to add one more comment: No matter how the relationship between the collecting bank and the drawee are, the collecting bank's duty and responsibility to the remitting bank overrides any duty to its customer. Therefore, the collecting bank should chase the payment and at least protect fee as wells