UCP 600 sub article 16f

[Ozoda]

UCP 600 sub article 16 f states that :

Quote

f. If an issuing bank or a confirming bank fails to act in accordance with the provisions of this article, it shall be precluded from claiming that the documents do not constitute a complying presentation.

Unquote


Does it mean that the nominated bank can check the documents more than 5 banking days??

[Navi]

Hi friend,

I think article 16f is not about the period of checking documents but may be about failure of advise of refusal stated as described in article 16c. In other words, If a nominated bank acting on its nomination (but not confirming bank) fails to act as per article 16, for instance not advising discrepancies properly to beneficiary, will not be precluded from claiming that docs were not complying... (my opinion)

Regards

[shahriar]

in my view you can not actually count the 5 days for the nominated bank. article 16 applies to nominated bank only when it is acting on its nomination. now unless the nominated bank honor or negotiate, there is no way to know that the nominated bank is acting on its nomination. if the nominated bank has communicated its express communication, even then it can refrain from taking the nomination at any time. so stop counting!!

[maqianyueer]

I think the nominated bank can check the documents more than 5 banking days.

[fionawang]

I think the nominated bank can check the documents more than 5 banking days.

Yes, we cannot count the days if the nominated bank don't accept the nomination and hasnot told the issuing bank. But it doesn't mean it could check Doc. more than 5 banking days if it accept the nomination. That's my opinion.
And in practice, will any nominated bank holding the doc. keep checking and without notice to issuing bank that he don't accept the nomination? :geek: