A Beneficiary’s Written Demand Was Rejected With No Comments

[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]

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

[picant]

Hi Pal,

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