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Docs released to drawee without payment . Drawee later wired funds to drawer. Is the collecting bank still liable for releasing documents without obtaining payment thru the collection?

Dear TradeLaporte,

the first point is that document should not be released until and unless payment is received from applicant in sight LC. under usance LC until and unless applicant accepts the document to pay on maturity document should not be released.

in your case, if the document is clean or discrepancy message is not received from LC issuing bank, collecting bank may claim the document amount even the payment is made through wire. if the discrepancy message is sent to collecting bank, it can only follow up for payment.

regards

Hi Pals,

I hope that you sent documents to a full branch of the collecting bank and not to an agency that is not doing international. Said that the collecting bank had to pay if it delivered the documents to the drawee.
I heard about some branches of banks that thought that documents were addressed to them for a further delivery to buyers!!
Other comments appreciated
Ciao