interest on reimbursement claim by confirming bank

jabra · Post by **jabra** » Sat Jan 31, 2009 11:20 am

dear all,

the document presented under a letter of credit was found discrepant and after 15 days the document was finally taken up by the applicant. however the LC was a confirmed one and the confirming bank debited out account. can we claim interest for this 15 days. the lc was available with the confirming bank by sight payment

iLC · Post by **iLC** » Sun Feb 01, 2009 7:20 pm

yes you can claim interest. UCP 600 article 16 g is applicable here

g. When an issuing bank refuses to honour or a confirming bank refuses to honour or negotiate and has given notice to that effect in accordance with this article, it shall then be entitled to claim a refund, with interest, of any reimbursement made.