Best Trade Solution

dear all,

if the issuing bank inform a confirming bank / nominated bank that a presentation that will be made it it in near future and should not be negotiated, what should the confirming bank / nominated bank do?

regards

mitra

a nominated bank will usually avoid the presentation generally. but for the confirming bank the situation is really difficult. i think the confirming bank should honor a complying presentation. because the confirming bank is protected by the disclaimer clauses.

A bank assumes no liability or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document, or for the general or particular conditions stipulated in a document or superimposed thereon;

if the confirming bank is to honor the notice of the issuing bank, then it will have effect similar to that of cancellation of confirmation which cannot be done without the consent of the beneficiary.

and last of all, honoring the call of issuing bank will deny the right of the beneficiary. it will be also like judging a speech as true or false even before it has been spoken .

regd

shahriar

such notice of fraud directly affect the principle of Irrevocability. besides a fraud should be reported to court, not to bank. so, a complying presentation must be honored unless there is a court injunction.