Calculation Of Maturity Date When The Document Is Discrepant

[hassan]

Dear all,
first of all please pay attention to the following Arts of ISBP 681 :
. . .
Maturity Date
45. If a draft states a maturity date by using an actual date, the date must have been calculated in accordance with the requirements of the credit.
46. For drafts drawn "at XXX days sight", the maturity date is established as follows:
a. in the case of complying documents, or in the case of non-complying documents where the drawee bank has not provided a notice of refusal, the maturity date will be XXX days after the date of receipt of documents by the drawee bank.
b. in the case of non-complying documents where the drawee bank has provided a notice of refusal and subsequent approval, at the latest XXX days after the date of acceptance of the draft by the drawee bank. The date of acceptance of the draft must be no later than the date the issuing bank accepts the waiver of the applicant.
47. In all cases the drawee bank must advise the maturity date to the presenter. The calculation of tenor and maturity dates, as shown above, would also apply to credits designated as being available by deferred payment, i.e., where there is no requirement for a draft to be presented by the beneficiary.

now you suppose LC is available by deferred payment at 90 days after shipment date and Art. 46(b) to happen. shipment date is 20 September,2008 and issuing bank accepted docs on 20 October,2008 then what will be the maturity date ?

thank you.

[cparial]

you have not mentioned about any discrepancy?

If those are complying presentation, even presentation with discrepancy but the drawee has accepted those, then the maturity date will be counted from shipment date.

Thanks

cparial

[cristiand969]

Dear Hassn,
there is an obvious confusion between those articles of ISBP and what you have inquired about.
The article 46-47 ISBP referes to LC by acceptance (with draft drawn at xxx days after sight) or deferred payment at xxx after sight.
Your question refers to 90 days after a given date (i.e. B/L date).
Therefore a/m articles are not applicable under that articles but under art. 45 i.e. maturity after an actual date ( 90 days after on board notation)
regards
Cristian

[jmitra]

i fully agree with cristian. xxx days sight means maturity will be xxx days after the date of presentation in case of a complying presentation.

while xxx days from the date of Bill of lading is fully different. the maturity date will remain same irrespective of the date of presentation as long as the document is complying

regd

mitra

[hassan]

thank you for answers to my question.
I draw your kind attention to the bold part of Art. 47 i/e " The calculation of tenor and maturity dates, as shown above, would also apply to credits designated as being available by deferred payment, i.e., where there is no requirement for a draft to be presented by the beneficiary. " which reffers to a diferred payment credit without draft with discrepant docs and refused by issuing bank. so I think we can apply this article for determining maturity date of payment of discrepant docs in diferred payment credit. only you supose that "90 days after shipment date" to be instead of for example "90 days sight" then what will be the maturity?

[jmitra]

dear hassan,

xxx sight does not necessarily means that it will have a draft. xxx sight in layman language means, as soon as you see the document, pay the beneficiary.

regards

mitra

[hassan]

appearly I coud not raised my question in a right manner so I hereby write it in another way :
1- L/C is available by diferred payment at 90 days after shipment date.
2- documents presented by beneficiary are discrepant.(for example spcifications of goods dose not copmly with what mentioned in l/c. meanwhile the shipment date is 01.july,2008) and the issuing bank refused it according to Art. 16 , UCP 600.
3- the issuing bank approuched the applicant for waiver and the applicant accepted the discrepancy 50 days after that date(for example on 20.september,2008) and the issuing bank also agreed it.
4- what will be the maturity date which must be advised to the beneficiary?

I hope every thing is clear

[cristiand969]

Once the issuing bank accepted documents it is bound to effect payment AS PER CREDIT TERMS (i.e 90 days after shipment date)
Hope this is clear too.
rgds
Cristian

[nesarul]

Dear Hasan,
based on your premise with an assumption that credit called for original transport document:
The following link will appease the problem: including accept a document after the allowable time duration:
http://www.lcviews.com/swq_15.htm
regards
nesar

[Syed]

when partial shipment has occurred or when two on board dates are given in BL or one or more set of Transport different documents ?? How it is different from calculating presentation period ??

I would be grateful if you could answer to my above questions