A Beneficiary’s Written Demand Was Rejected With No Comments

With the introduction of Uniform Rules for Documentary Guarantee or URDG 758, the rules for Documentary Guarantee seem to be popular again. It can be imagined from the increasing number of questions that have popped up in recent days. Documentary Guarantee Forum is an effort to develop a platform to discuss these questions.
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Marina
Posts: 4
Joined: Mon Feb 25, 2013 11:00 pm
First Name: Marina
Last Name: Vari
Organization: Bank
Filter: Two Plus Two =: 4
Location: Greece

A Beneficiary’s Written Demand Was Rejected With No Comments

Post by Marina »

Your opinion is requested to the case below :
A bank guarantee has been issued from a XXXXBANK with expiry date 31March2014,
and the issuance is not subject to the URDG but only to the laws of the country where
the issuing bank is located.
The bnf sent its written demand for immediate payment due to the not fulfilment of the applicant s obligations.
The XXXXBANK advised ,via swift msg, that refuses to honour the said
written demand ,stating that is found incorrect without any other explanations.
The bnf s bank has examined the relative docs (bnf s written demand , copies of unpaid invoices and copies of transportation docs) prior to the forwading to the XXXXBANK guiset (counters) and were found in accordance with bank guarantee terms.
Is it permittable a rejection to be done with no further notice to the details of the non acceptance ???
What is your suggestion about the bnf s further actions.
Your reply ll be highly appreciated.
Marina
WanDan
Posts: 68
Joined: Tue Feb 05, 2013 4:46 pm
First Name: Wan
Last Name: Dan
Organization: Bank
Filter: Two Plus Two =: 4
Location: Germany

Grounds for rejection

Post by WanDan »

Dear Marina,

I think in this case it is a question of the applicable law. Nonetheless, I would expect the guarantor to give reasons for rejecting the demand.

In case of URDG 758 all discrepancies have to be communicated.

Cheers,
Dan
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picant
Posts: 1962
Joined: Wed Aug 20, 2008 1:49 pm

Countries

Post by picant »

Hi Pal,

if it is possible let us know the Countries involved in this transactions.
Ciao
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