Good Faith and Reasonable Care

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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Arun
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Good Faith and Reasonable Care

Post by Arun » Mon Jul 01, 2013 10:13 pm

Hi

Under Article 9 in URC522 it states bank will act in good faith and exercise reasonable care. What it exactly means and the words good faith and reasonable care mentions about what? Please advise.
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VAJAY26
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Good Faith and Reasonable Care

Post by VAJAY26 » Wed Sep 04, 2013 10:36 am

Hi Arun,

Bank should take reasonable care with respect risk involve and sanction checks. As Bank deals only with documents and not goods and services proper care should be taken by Bank with respect to Internal guideline and Local Rules.

More suggestion appreciated.
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