Discrepancy / IRU

[RaoulC]

Hello,

An LC was issued by an issuing bank, confirmed by a confirming bank under IRU of a reimbursement bank (subject to URR 725).
Beneficiary presented a set of documents to confirming bank that found it compliant.
Issuing bank found discrepancies in the presented documents.

Confirming bank sent a claim to reimbursing bank.
In that case, does the reimbursement bank is obliged to pay the confirming bank ?

Best regards

[picant]

Hi Pal,

reimbursing bank must pay, if the nominated bank made a mistake in checking documents, will be sued or
at least object of discussion. I dare say that the most of discrepancies
, if no so evident, may only represent a different point of view.
If you have more documentation, deleting naturally sensitive data, please post here.
Ciao

[DELL]

Hi,

LC Is issued as
Tenor at 90 days sight, available with SCBL Singapore.

>SCBL Singapore found discrepancy in submitted document by beneficiary for discounting dt. 01.09.2020.

>Before discounting the discrepancy documents SCBL Singapore, obtained acceptance from LC issuing bank notifying through swift. (date 04.09.2020)

>Documents are discounted and send the documents to issuing bank quoting discrepancies and asking due date of documents as on 01.09.2020 + 90 days i.e 30.11.2020.

> The applicant bank quotes the due date as document received on the bank as on 10.09.2020 +90 i.e 09.12.2020


Which due date is correct negotiating bank or LC issuing bank.

regards

[picant]

Hi Pal,

as per ISBP 745 B4,5,6,7 date starts from 04.09 as the issuing bank waives discrepancy.
However to cover this gap normally days of grace were added.
Other comments appreciated
Ciao