refusing a document under court injunction

[jabra]

deal all,

if there is a court injunction on a letter of credit transaction and if a presentation has been made after the date of the injunction, do i require to refuse the document as per article 16 of UCP?

[iLC]

under the given situation, you are not required to refuse a presentation since the entire letter of credit transaction has been superseded by the local law.

[Judith]

In my opinion, you can only refuse documents under Article 16 of the UCP if there is a valid discrepancy as per terms of the LC / UCP. If there is a court injunction, it may be prudent to inform the presenter that no payment will be made. Nonetheless, it may be a good idea to check the documents and if there is a discrepancy, refuse documents under Article 16. This way, the issuing bank is protected both under local law and UCP.