From which day is the tenor of draft started ?

shim · Post by **shim** » Tue Mar 24, 2009 10:54 pm

such in this case below , when is the maturity date of the draft?
-at 1 march( friday),From nominated bank, An Issuing bank received time draft,documents which indicate a discrepancy on the coverring letter.
and at 8 march(friday) , applicant gave a waiver ,and the issuing bank decided to accept the time draft showing "30days after sight" and.. there wasn't notice of refusal against the non-complying presentation.

when will the calculation of maturity date be started from? which day? 1 or 8??

let me add one more question. At this stage above, If the date is 1, Shold issuing bank have instantly had to give rejection or refusal notice to the nominated bank in order to make the tenor of draft pushed out?

actually I am not in English-speaking countries.so I am diffident about speaking English and It could be diffcult for you to understand what I am asking ......
but I really hope you to understand what I am saying .. please read carefully and please answer correctly ... thank you

jmitra · Post by **jmitra** » Tue Mar 24, 2009 11:09 pm

to answer your first question
ISBP says

46. For drafts drawn "at XXX days sight", the maturity date is established as follows:
.....
in the case of non-complying documents where the drawee bank has provided a notice of refusal and subsequent approval, at the latest XXX days after the date of acceptance of the draft by the drawee bank. The date of acceptance of the draft must be no later than the date the issuing bank accepts the waiver of the applicant.

that means the maturity date will be calculated from 8th.

i am sorry but i am not sure about your 2nd question. making a refusal does not depend on whether LC has a draft or not. if the presentation has discrepancies, you have to refuse it within 5 banking days. once you refuse it, no matter you do it on the 1st or on the 5th, calculation of maturity date will be stopped till the acceptance of waiver by the issuing bank.

shim · Post by **shim** » Tue Mar 24, 2009 11:15 pm

there was no notice of refusal !

jmitra · Post by **jmitra** » Tue Mar 24, 2009 11:19 pm

a. in the case of complying documents, or in the case of non-complying documents where the drawee bank has not provided a notice of refusal, the maturity date will be XXX days after the date of receipt of documents by the drawee bank.

shim · Post by **shim** » Tue Mar 24, 2009 11:33 pm

:!: :?: if the issuing bank gave notice of refusal and then accepted the draft at 8, would the starting date of calculating be from 8?

jmitra · Post by **jmitra** » Tue Mar 24, 2009 11:42 pm

since its after sight, it would be the 9th

shim · Post by **shim** » Tue Mar 24, 2009 11:44 pm

:lol:

From which day is the tenor of draft started ?

From which day is the tenor of draft started ?

re: maturity

I skipped one things

ISBP answers that too

thanks .. 1 more plz..

no

thanks