RIGHTS OF APPLICANT AGAINST THE ISSUING BANK

[vtmtrading]

HI,
I have a question:
If the NEG banks sends the docs on approval basis of as complying, and the issuing bank finds the docs complied and then pays to neg bank and then release the docs to applicant, But the applicant finds discrepancies in docs, dose the applicant the right to recourse to Issuing bank and claim its money because of issuing bank fault?

If the applicant has the aforesaid right, pls let me know the legal references.
Thanks

[picant]

Hi Pal,

theoretically the applicant should require the issuing bank reason for having accepted not compliant documents. I dare say under which article of UCP etc. Probably applicantt dissent would refer to
goods quantity or quality, that are outside the l/c. An issuing bank in delivering l/c documents will
require the applicant to sign an acceptance of documents, even if they will be found discrepant in
the near future.
Other comments appreciated
Ciao

[Reetika]

HI,
I have a question:
If the NEG banks sends the docs on approval basis of as complying, and the issuing bank finds the docs complied and then pays to neg bank and then release the docs to applicant, But the applicant finds discrepancies in docs, dose the applicant the right to recourse to Issuing bank and claim its money because of issuing bank fault?

If the applicant has the aforesaid right, pls let me know the legal references.
Thanks

Yes applicant has right to recourse to issuing bank as issuing bank has given its separate undertaking to applicant to honour a complying presentation but as the presentation is not compliant and applicant has also received the document and they will check it for compliance according to their instructions which they provided to issuing bank and docs requirements.