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hi all, can any one clarify below:

Nominated bank acting on its nomination and checked the docs and docs are compliant and forward to ISSUING BANK
ISSUING BANK found that documents are discrepant.....is issuing bank is still undertake to nominated bank or not..?

Hi Pal,

a part considering if discrepancies are true or not, the refused documents remain at presenting bank disposal, awaiting for further action as per art 16 UCP 600. I dont understand the undertaking !!??
Ciao

thanks,

my Query is issuing bank has to Reimburse to nominated bank ....?.since nominated bank consider its a complying presenation..?....
as ucp600 says ''. An issuing bank undertakes to reimburse a nominated bank that has honoured or negotiated a complying presentation and forwarded the documents to the issuing bank.''

pls clarify..

hi ramesh,

issuing bank has no obligation or undertake to nominated bank, against discrepant docs. it will not make any payment to the nominated bank. simple as that! in this situation; if the nominated bank has already paid the beneficiary, it can claim the recover from beneficiary. because nominated banks pay to the beneficiaries "with recourse". second option and more applicable is the nominated bank requires the beneficiary to contact with the applicant in order to submit a waiver to the issuing bank. and then the reimbursements will be released.
Ciao