Best Trade Solution

deal all,

if there is a court injunction on a letter of credit transaction and if a presentation has been made after the date of the injunction, do i require to refuse the document as per article 16 of UCP?

under the given situation, you are not required to refuse a presentation since the entire letter of credit transaction has been superseded by the local law.

In my opinion, you can only refuse documents under Article 16 of the UCP if there is a valid discrepancy as per terms of the LC / UCP. If there is a court injunction, it may be prudent to inform the presenter that no payment will be made. Nonetheless, it may be a good idea to check the documents and if there is a discrepancy, refuse documents under Article 16. This way, the issuing bank is protected both under local law and UCP.