URGENT: Do you HAVE To Pay If Delay Shipment?

[Max123]

My question is:

If the goods were dispatched in time in accordance with the bill of lading, and the bank accordingly issued the payment to the seller, do you HAVE To pay the bank? If not, where in the UCP is this stated?


Thanks for any replies!

[picant]

Hi Pal,

if the shipment has been effected as per l/c, beneficiary will present documents to the bank and obtain
payment. In the UCP there is no articles concerning the payment to the bank by a buyer, it is writte on
the application regarding the issuance of the l/c.
Applicant is not a party in l/c-,,,,
Other comments appreciated
ciao

[cristiand969]

Why do you ask a question which has the answer in the agreement between issuing bank and applicant?

[Max123]

Thanks for replies.

So this is not any longer governed by UCP?
This means that in any case of delay (after dispatch) , the bank will always issue payment to the seller.
Whether the applicant is going to repay the bank instantly, or even pay at all is a matter of a separate contract between the buyer and the bank?

This begs the question: What if the seller obtains payment from the bank and the shipment never reaches its destination.

Will the buyer typically have to pay the bank? Will the bank be at the risk? How can they claim compensation from the seller?

[picant]

Hi Pal

banks deal with documents and their compliance depts have a knowledge of customers, so it is rare that a document could be false, but sometime it happens, Fraud is always possible but l/c is surer than other means of payment. Some issuing bank require a satisfactory credit report to accompany the presentation
of documents under a l/c.
Good luck!
Ciao