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How can a bank can save its rights while discounting a draft against acceptance under a documentary collection taking in to consideration that the collecting bank will not avalize this draft ? what if the drawee accepted the draft and the goods were in a good order but he refused to pay ,what can the discounting bank do in this case ?

Dear,

if the drawee accepting the draft it will then liable to pay the collecting bank on every cost on or before the date of maturity, and with respect to your question of discounting to drawee, remitting bank will get the payment from collecting/presenting bank on or after maturity.

Hi Pal,

probably you have recourse against your customer/drawer, the collecting bank may note or protest the accepted draft, then the drawer may sue the drawee for no payment as per contract terms.
By discounting a bank bears the risk of no payment at maturity.
Other comments appreciated
Ciao

Dear,
We opened an Irrevocable Letter of Credit at sight for importing paper products. In the LC, there is clause that no documents would be earlier than LC issuing date but our supplier made all documents' date earlier than LC issuing date. Then our supplier sent the discrepant document on collection basis. Our bank asked discount the value and our supplier accepted USD 70000 discount from their value USD 214000. Now my question is which value our bank will endorse in Commercial Invoice? Is it USD 214000 or USD14000?