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Hy everyone.

Hope everything is fine on your side.

I have little question, regarding LOI.

What if issuing bank pays amount under LC against presentation of Commercial Invoice and LOI. Later, originals presented but issuing bank checked it and found discrepancies, can issuing bank claim back money from Beneficiary?

Thank u in advance.

Hi Pal,

I dont think that a LOI will cover this situation, LOI is required becouse no original bills of lading presented,
Other comments appreciated
Ciao

Dear Picant,

Thank u for your reply. Lets say that LOI is made in favor of Issuing Bank not in favor of applicant. Bene presented Invoice and LOI, issuing Bank payed amount. Later applicant could not repay sum to issuing bank and issuing Bank required original B/L to be sent to him. Issuing bank checked B/L's and found discrepancies, i guess issuing bank can claim money back from Bene.

What is your opinion?

The things are different if LOI is made in favor of Applicant. This situation dramatically changes everything. In such case issuing bank is not entitled to claim back money in similar case.