:47A: Additional Conditions - Payment against Irrecoverable LC

[Islambd16]

Need Expert Kind Advise please & attached LC Payment terms as well.

* Inland Irrecoverable Local LC Goods has been delivered & fast 70% payment has been made.

* Issuing bank not remitting balance 30% payment as per the instruction of advising bank and even don't reply any massage against documents.

* Also Client unable to pay on due date and need extension of payment intentionally & already 120 days due from fast payment.

So Please help in this regard how to get the payment with further steps.

Thanks.

[dinesh2476]

Islambd,

1. Hope we have presented credit compliant documents to issuing bank.
2. If it is discrepant documents, Please check what was the amount mentioned in the acceptance message from the issuing bank(we already received payment for the 70% i guess)
3. we need to contact FI RM in issuing bank country to understand the stand on issuing bank.
4. If it is not fruitful, contact legal team of your operations to make a statement to the issuing bank

If it is credit compliant documents we have every right to chase issuing bank and step in to the court post legal opinion.

Thanks &Regards
Dinesh Kumar

[picant]

Hi Pal,

first of all I assume that we are speaking of an IRREVOCABLE l/C.
When it contains clause for commissioning of the goods, beneficiary must be cautious as this clause will
be operative only against buyer consent.
In your case, however it seems that the issuing bank will pay against presentation of a document or within 30 days.
If it does not happen you need a legal advice.
Other comments appreciated
Ciao

[Islambd16]

Hi

Thanks lot for advise.Its been twice advising bank present the documents & issuing bank informed discrepancy following & also as earlier i shared the LC payments terms as well.
Please advise further.

Thanks
Islam

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[cristiand969]

The conditions of the L/C stipulate that payment shall be effected either against supporting docs proving commissioning of goods or at 30 days (presumably from an event without production of any docs) In this respect L/c was rather unclear. However, when presenting the documents, you indicated to issuing bank that first alternative is activated, namely, the
30% pct to be paid against presented documents which unfortunately were discrepant. Since there were no withdrawing of documents by benef,within LC validity date so as to be activated the second alternative, the issuing bank had no choice but to wait either instructions from applicant or from beneficiary

[dinesh2476]

agree with cris,

The 1st stage '' presentation of documents'' itself has a discrepancy LC expiry it means documents were routed through banking channel post expiry of their understanding to pay under this LC,hence issuing bank does not have any obligation under both 1st stage and 2nd stage(commissioning) to make payment.

Thanks &Regards
Dinesh Kumar