The Reimbursing Bank Fails To Deduct Charges From The Amount

[RAKESHCH]

article 13 b (iv )states:

iv.A reimbursing bank's charges are for the account of the issuing bank. However, if the charges are for the account of the beneficiary, it is the responsibility of an issuing bank to so indicate in the credit and in the reimbursement authorization. If a reimbursing bank's charges are for the account of the beneficiary, they shall be deducted from the amount due to a claiming bank when reimbursement is made. If no reimbursement is made, the reimbursing bank's charges remain the obligation of the issuing bank.

LETS CONSIDER a scenario....if the reimbursing bank fails to deduct charges from the amount paid to the claiming as instructed by the issuing bank...can it claim the chrges from the issuing bank...


will ARTICLE 37C COMES INTO EFFECT IN THE ABOVE CASE

[RAHULCH]

it pertains to URR

IN MY OPINION..REIMBURSING BANK CANNOT CLAIM IT..

[hardy2175]

All charges pertaining to the LC if not paid by the bene are chargeable on the applicant . So even if some charges payable by the bene are not paid by him shall ultimately be on the applicant.

[tituisrt]

Dear,
As per article 37 a & b applicant is Ultimately responsible for paying charges
.
thanks

[mijanlt23004]

If the issuing Bank exclude article 37 c then issuing bank is not responsible for the same otherwise must be pay.

[RANGANAA]

Its the responsibility of the RMB to deduct charges from the claim. If the same is not deducted, its the responsibility of the issuing bank/applicant to bear the charges