Query

[Altab]

LC field F46A: Documents required
Full set shipped on Board Bill of Lading to be made out or endorsed to the order of xxx Bank Ltd, showing freight prepaid marked notify to the Applicant and Issuing Bank.

Covering schedule of the presented documents showing: 1st mail 2/3 of B/L & 2nd mail 1/3 B/L. Issuing Bank found no discrepancy with the documents and make payment according to the terms and condition. But the 2nd mail is received before the expiry of LC and found discrepant.

In this case, what will be the treatment with the documents & if 2nd mail is to be received after the expiry of LC then what will be the treatment?

Waiting for expert opinion.

[picant]

Hi Pal,

1/3 bill of lading received before or after the l/c expiry?
It depends on the place of availability, nominated/advising bank or issuing bank. Let us know:
Ciao

[cristiand969]

The issuing bank should have not effected payment based on receipt of first set as the L/C required full set.
On the other hand, if the issuing bank already released first set to applicant (and obviously endorsed the BL) , there is nothing else to do but to accept the second set as presented. By endorsing the first 2 B/L , the issuing bank placed itself as a bona fide holder (so as it can lawfully endorse ) and this means issuing bank legally committed to payment