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Could you please help me with the following issue.

Bank refused to honour the discrepant documents and stated in its MT 734 in field no. 77B 'Disposal of Documents' code 'NOTIFY'.
After receipt of applicant's waiver and the payment should the bank obtain the approval of the presenter for release of documents to applicant?

Article 16 of UCP states that in case the issuing bank has previously stated either of the following:
HOLD – We are holding documents at your disposal… 16 (c) (iii) (a)
NOTIFY – We have contacted the applicant for a waiver… 16 (c) (iii) (b)

… it may at any point, without further notice to the presenter, return the document

(16(e) A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may, after providing notice required by sub-article 16 (c) (iii) (a) or (b), return the documents to the presenter at any time.)

Just thought that I'd point out that while the issuing bank is not REQUIRED to give any further notice to the presenter after informing them of disposal instruction "HOLD" or "NOTIFY", it is still good banking practice to ask the presenter on how they would like the documents to be disposed (as opposed to returning the presentation to their address.) They may request that the documents be rather sent to another bank in the issuing bank's country.

no

generaly in the l/c all the bank put one particular clause regarding the discharge of discrepant docs

moreover some bank puts the complete article in their refusal notice



Thanks & Regards,

if in this case the applicant waived the discrepancies and the issuing bank effected payment, should the issuing bank release the documents after payment to the applicant WITHOUT prior permission of the presenter to release the documents???

the said SWIFT option is equivalent to UCP 600 article 16 C iii b. here the sentence "or receives further instructions from the presenter prior to agreeing to accept a waiver" is significant

hence, yes, the issuing bank can release the document