URC522 Article 26C iii

[VirafMirza]

Dear All,

Case Study : Usance document under collection, drawee accepts bill of exchange to mature i.e. 01/01/2012. Just before maturity drawee request collecting/presenting bank to send the message for extension, message sent to remitting bank and drawee not paying the collection in accordance to the maturity date. Remitting bank does not reply collecting/presenting bank sends 2 more messages at the interval of 21 days and we are over 60 days. As per subject article after 60 days upon non receipt of further instruction can collecting/presenting return the accepted Bill of Exchange bank to remitting bank.

Your valued opinions appreciated.

[picant]

Hi Pal,

banks must adopt a mutual kindly behaviour. If a bank asks for fresh instructions the presenting bank must answer, stating may be,"" Drawee or drawer do not answer to our letter, mail, fax or phone call"".
The collecting bank could return the unpaid item, asking for refund of charges.
Other comments appreciated
Ciao

[WanDan]

IMHO you may return the Bill as per captioned article.

Cheers