The most important document

[Sohel Rana]

Dear all
Can anyone let me know
What is the most important and noticeable documents when a bill is checked for collection?

And what are the major discrepancies?

If beneficiary requests that send the documents with discrepancies then what should the bank do?

Is it possible or wise-able to purchase a discrepant documents? What is the risks in that case?

Any comments are appreciable.

rgds
Sohel

[picant]

Hi Pal,

normally a bank in managing a collection, must check the number of documents received by the remitter and if some documents, i.e. bill of lading are in the negotiable form(blank endorsed, order of presenting bank than endorsed in favour of collecting bank etc.). So I consider the Full set bill of lading as the most important document.
Buying goods via discrepant documents(maybe rejected documents under an L/C) could be risky, but naturally will depend on the parties involved; seller, broker, agent etc.
Other comments appreciated
Ciao

[jmitra]

pure theoretically none of the documents need to be checked because there is no concept like discrepancy in URC. however im aware of the fact that some remitting bank check the documents to be sent under URC against the sales contract. IMHO this is purely to satisfy the principal as there is no significant benefit in getting the payment.

about purchase, the question should be is it wise to purchase document under URC? while it is possible i will avoid to do so unless the principal is a valuable customer of mine and the drawee has a good credit rating

[picant]

Hi Pals,

It is no question of discrepancy but simple a question of professional care, in collection I have to check, count the number of documents remitted by my customer and if those are negotiable, permitting the buyer to enter in possess of the goods.
Other comments appreciated
Ciao