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Can A Issuing Bank Honor A Non-Complying Presentation?
Posted: Mon Nov 17, 2014 11:10 pm
by cdcsmentor
We know from UCP 600 Article 2 (definition) that an issuing bank must honor a complying presentation. Can an issuing bank honor a non-complying documents? Then what is the risk borne by the issuing bank?
Can A Issuing Bank Honor A Non-Complying Presentation?
Posted: Thu Nov 20, 2014 11:07 am
by yousufsyed22
Bank must not Honor for Non-complying Presentation, Applicant has right to claim on Issuing bank if he face any problem with the discrepant documents.
Issuing Bank Can Honor A Non-Complying Presentation
Posted: Thu Nov 20, 2014 4:04 pm
by tituisrt
Dear,
YES
Issuing Bank Can Honor A Non-Complying Presentation by its sole judgement.
If the discrepancies are minor (will not hamper the applicant's interests) an issuing bank may honor a non-complying presentation without informing applicant.
But if the discrepancies are major (will hamper the applicant's interests) then issuing bank need the approval of applicant's.