Is there any liability to collecting bank in delay returning

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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TradeLaporte
Posts: 165
Joined: Sat Nov 24, 2012 12:40 pm
First Name: ART
Last Name: TRATADOLIBRE
Organization: Trade Co
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Location: United States

Is there any liability to collecting bank in delay returning

Post by TradeLaporte » Fri Oct 31, 2014 7:19 pm

Dear members

We delay returning documents for 2 weeks to the remitting bank . Drawer after refusing docs is claiming that because of our delay there will be a lost for over $50k that we will need to absorb
Dear members I do not agree there is probably remedies for the shipper to have control and request return of shipment without the original documents

Your prompt comments appreciated it
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picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Art 26 URC 522

Post by picant » Sat Nov 01, 2014 4:24 pm

Hi Pal,

once informed the remitting bank about no-payment, it is the latter that must instruct you.
If such instructions came immediately you have to act as per Art 9, in this case 2 weeks after receipt of instructions to return documents seem too much.Similar case, but referring to UCP happened in U.K. few years ago. Refused documents were sent later to the presenting bank. I dont know the Court decision!
Ciao
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