Presenting Bank refusing a collection after presentation

[Shing]

I'd be interested in your opinion on the responsibilies and any liability on a presenting bank if they have made presentation to the drawee and acknowledged the collection to the remitting bank, but now refuse to handle the collection any further. The collection would be D/A and the draft may or may not have been accepted. Can we insist the bank handles the collection until maturity? or as it is only a collection, can they just return the docs and walk away?

[berry]

interesting question indeed. just need to know why the presenting bank is doing so. i mean there may be a reason which may in fact affect the answer.

[Shing]

As we understand it, the drawee was until recently a customer of the presenting bank, but has recently left on poor terms, hence the presenting bank does not wish to continue their involvement in the collection.