Can Drawee Make Payment Before Maturity Under D/A

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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ngochuong
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Can Drawee Make Payment Before Maturity Under D/A

Post by ngochuong » Thu Nov 15, 2012 11:26 pm

the D/A collection docs have been accepted for payment on 30 DEC 2012 by the drawee.

However, on 15 NOV 2012, the drawee reques for payment.

As the request’s drawee, can the collecting effect payment before 30 DEC 2012 without advice their action to the remitting bank?
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picant
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Yes it is possible....

Post by picant » Fri Nov 16, 2012 7:10 pm

Hi Pal,

IMHO it is possible, but in some Countries it could be prohibited due to "par conditio creditorum" where a debtor could privilege some supplier just before bankrupcy.
Other comments appreciated
Ciao
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