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LC expired treated under collection

Posted: Fri Sep 04, 2009 10:40 am
by nura
Experts,
often the exporter make shipment of goods under expired letter of credit and the issuing bank send a message that they are treating the presentation under URC. in that case should the bank send a new instruction set to the issuing bank about how the document is to be handled? if the shipment is one by air, then how the exporter right will be protected.

Problem

Posted: Fri Sep 25, 2009 7:30 pm
by cristiand969
Issuing bank has no right to treat the presentation on collection basis unless instructed by presenter.
Consider at least the charges different applied in L/C versus collection.