Lost Check, Paid Against An Indemnity Letter

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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KarlBitar
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Joined: Sat Mar 05, 2016 3:43 pm
First Name: Karl
Last Name: Bitar
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Location: lebanon

Lost Check, Paid Against An Indemnity Letter

Post by KarlBitar » Sat Mar 05, 2016 3:56 pm

Hello sirs,
Our bank just received today a copy of a check attached to a copy of an indemnity letter. And the presenting bank is asking us to pay against these 2 copies. What to do in such case as a bank?
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picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Legal conseil...

Post by picant » Wed Mar 09, 2016 12:51 am

Hi Pal,

it is common to pay a check under copy of the same and an indemnity.
I think that any Country has a different rule to treat this matter.
It will pay a big role if the check is not transferable or negotiable, however it is a problem for your legal dept.
Other comments appreciated
Ciao
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