LC Expired 2011 Beneficiary Claiming 10 Percent Remaining

[TradeLaporte]

Dear fellows

How will you handle customer enquiry about 10 pct remaining on an lc that expired in 2011 . Will you accept to present the claim under documentary collections?

[picant]

Hi Pal,

I had the same problem, the l/c covered a supply in full, but 90% was settled in few months and balance was due after installation and commissioning of the machinery. In the meantime the l/c expired. In one case sending a certificate signed by both seller and buyer I received the money. In other cases issuing bank refused to pay. Under beneficiary instructions,
IMHO, you may send the claim or required document to the issuing bank, quoting former l/c number but as collection as per URC 522.
Naturally it is a collection, so no undertaking to pay by the issuing bank!
Other comments and experiences appreciated
Ciao

[Navi]

Hi friend,

We sometimes come across similar cases.

When we are requested to send documents in relation to an LC that expired before, we first inform our customer that issuing bank and/or beneficiary not bound to pay against that presentation unless otherwise LC permits such presentaton after expiry. Some of our customers handle the situation themselves i.e. send documents directly to beneficiary to avoid banking charges. For others who insist that we send documents to issuing bank, we forward the documents to issuing bank without any undertaking on our part, under collection basis to be delivered to applicant against payment. On our covering letter we may refer to LC ref just for information.
.
regards

[hainam]

Hi friend,
As our policy, my bank will treat the documents as under documentary collections