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presenting bank vs collecting bank
Posted: Mon Dec 08, 2008 9:48 pm
by ofei
As we know, the collecting bank and the presenting bank may be different banks. But in the stipulations of URC522, quite a lot of stipulatations are for presenting bank, such as " Advice of Non-payment and/or Non-acceptance","Charges and Expenses" etc. I am puzzled if the presenting bank it refers to is also the collecting bank. If not, won't the collecting bank collect fees? And why can't I find the relative stipulations regulating the charges collected by the collecting bank?
Your comments appreciated.
Ofei
presenting bank is also a collecting bank
Posted: Wed Dec 10, 2008 1:49 am
by iLC
dear ofei,
my understanding says that presenting bank is also a collecting bank. URC 522 3a4
IV. the "presenting bank" which is the collecting bank making presentation to the drawee.
different banks or same bank?
Posted: Fri Dec 19, 2008 7:55 pm
by ofei
Dear iLC,
Though URC522 seems to admit presenting bank is also the collecting bank. But here in China, most textbooks state that the presenting bank and collecting bank may either be the same bank or different banks. How to explain? Still puzzled... :?
Ofei
i can understand
Posted: Sat Dec 20, 2008 10:19 pm
by iLC
i can understand the point of views of those author. In fact I have seen a number of materials giving similar statement and I don’t disagree with them. They are classifying the URC operation by the time of their occurrence. Certainly the presetting bank occurs after the collecting bank and that leaves a chance for the presenting bank and collecting bank to be different. But this is an elementary idea and has a logical error. One need to understand that a collecting bank, at any stage of the collection process, will always treat a incoming collection document as if it has been received from a remitting bank. Thus any bank other than the remitting bank becomes a collecting bank. The presenting bank is also therefore a collecting bank but present the document to the drawee instead of another collecting bank.