Dear all
I've one question as below:
The LC issue with the field 41D: any bank by payment
The doc present from the ben to the ABC bank and that bank make the payment to ben refer to the doc present comply to the LC and send the doc to the issuing bank for reimbursement. When the doc reach to issuing bank and issuing bank check the doc and found the discrepancy, could the issuing bank reject the payment to ABC bank?
Thanks
Can Issuing Bank Reject Payment For Discrepancy?
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art 14
Issuing bank is having independent authority to verify documents ref to art 14, even covering schedule of negotiating/advising bank showing it has been negotiated purchase and fully comply as per terms and condition of L/c. Except in case of confirming bank as per article 8a and icc commission opinion R270,
Issuing may refuse to pay up to discrepancy rectification.
Issuing may refuse to pay up to discrepancy rectification.
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art16(c) of UCP 600
When an nominated bank acting on its nomination, a confirming bank, if any, and th issuing bank decides to refuse to honour or negociate, it must give a single notice to that effect to the presenter.
The notice must state that the bank is refusing to honour or negociate and each discrepancy in respect of which the bank refuses to honour or negociate
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Refund
The IB is entitled to refuse the documents, but in the case of an LC available "By Payment", it is likely that the nominated bank will alreaedy have reimbursed itself, either by debiting the issuing bank's account or by claiming and receiving reimbursement from a reimbursing bank. Therefore, it is more case of the IB requiring refund rather than refusing payment.Chamnan wrote:Dear all
I've one question as below:
The LC issue with the field 41D: any bank by payment
The doc present from the ben to the ABC bank and that bank make the payment to ben refer to the doc present comply to the LC and send the doc to the issuing bank for reimbursement. When the doc reach to issuing bank and issuing bank check the doc and found the discrepancy, could the issuing bank reject the payment to ABC bank?
Thanks