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Unpaid DA

Posted: Thu Apr 19, 2018 2:13 pm
by Fajar
Dear expert

I would like to ask question regarding unpaid Documentary againts acceptance.

Is it necessary for collecting bank to ask for collateral when the drawee accept the document?

If on maturity date drawee not pay, can the remitting bank or drawer sue collecting bank?

Thank you

No

Posted: Mon Apr 23, 2018 2:42 am
by picant
Hi Pal,

normally acceptance is by the buyer, except when the presenting bank is required to provide a guarantee.
So no collateral or credit grantng is required.
In case of doubt a remitting bank clarification may be necessary.
Other comments appreciated
Ciao

Re: Unpaid DA

Posted: Sun Dec 23, 2018 7:34 pm
by TaiOanlan
D/A or D/P transactions are basically depending on applicant`s credibility and financial situation.
A bank should be doing thorough credit due diligence before entering any Collection transaction.
Asking for collateral at the stage of a D/A being unpaid on maturity date seems way too late.

Regards,

Re: Unpaid DA

Posted: Sun Apr 14, 2019 2:30 am
by LLawrence
Either D/P or D/A does not guarantee a payment unless other products (such as avalisation) are chosen within the transaction. Even if the bill has been accepted, it does not mean that the payment will be made