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the nomiated bank requirments
Posted: Tue Feb 17, 2009 9:51 pm
by ahmed fouad
does the nominated bank liable to examine the documents within 5 working days
If confirming yes...
Posted: Tue Feb 17, 2009 9:59 pm
by Navi
Hi friend,
As per UCP 14 (a,b), a nominated bank acting on its nomination, a confirming bank, if any, and issuing bank must examine a presentation and each have a maximum of five banking days to determine whether a presentation is complying.
From the article, we can say that the nominated bank if at the same time confirming bank or acting on its nomination, then yes, they must examine.
Regards
nominated bank
Posted: Tue Feb 17, 2009 10:05 pm
by ahmed fouad
what about article 16f which exclued the nominated bank
accourdingly i think the nominated bank (who is not a confiming bank) can never be preculded from claiming that docs are not complied
good point...
Posted: Wed Feb 18, 2009 3:00 am
by Navi
In my opinion, the nominated bank (if not confirmed the credit) may act on its nomination and pay the beneficiary with recourse. Therefore, if the nominated bank fails to act in accordance with article 16, and cannot get reimbursement from issuing/confirming bank, beneficiary should refund the nominated bank.
Article 14 seem to contradict to article 16, however, they refer to different points. Article 14 explains the standarts of document examination whereas article 16 states about notice of discrepant docs.
More comments appreciated
Regards
So simple
Posted: Wed Feb 18, 2009 6:00 am
by rockets
If the nominated bank act on his nomination and requested to do so from the beneficary.
Regards
A.A.
Sub-article 16 (f). Why a nominated bank is not mentioned
Posted: Thu Feb 19, 2009 9:25 am
by iLC
to answer the question of ahmed;
FAQ V2 where mr. collyer said
A nominated bank that has not added its confirmation has no obligation to act under the credit. It has given no undertaking to the beneficiary that they will honor or negotiate upon receipt of compliant documents. Even though the nominated bank may take more than the maximum of 5 banking days, they cannot be precluded from saying that the documents are discrepant as they need not effect any settlement under the credit.
the nominated bank requirement
Posted: Wed Feb 25, 2009 5:56 pm
by nesarul
Hi ,
Lets consider the situation:
under above transaction,
Nominated bank provided express (written) consent to the beneficary as per sub article 12(a) prior to presentation of document. which proved that nominated bank acted on its nomination. is n't it?
then can the nominated bank ignore its obligation under a document presented to its counter despite article 16(f) of UCP 600?
regards
nesar