Should Beneficiary Directly Ask Conforming Bank To Discount

[mskhan42]

Hi,
Beneficiary presents documents to the conforming/nominated bank, but due to some disagreement
beneficiary collects documents from conforming/nominated bank and presents same documents to
some other bank and asked to arrange to send these documents to the conforming/nominated bank
and ask them to send these documents to the issuing bank on approval basis.

subsequently, conforming bank received acceptance from the issuing bank and same communicated
to the presenting bank, now, beneficiary wants to discount the bill amount, what will be the correct
line of action i.e. should the beneficiary directly ask conforming bank to discount the bill and pay through
presenting bank or approach through presenting bank to the conforming bank for discounting.

Regards,

[nraajesh]

Hello Khan,

Both ways are acceptable.... either beneficiary can request discount be made by confirming bank thru' presenting bank or they can directly approach confirming bank and place the discount request and ask them to pay thru' presenting bank.

But in both the ways, the discount has to be accepted by the issuing bank (considering that docs are sent on approval)

Regards,

Rajesh