Collection D/A

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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Phone
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Collection D/A

Post by Phone » Thu Jun 14, 2018 3:28 pm

Dear All,
I have some trouble about D/A as: seller's bank sent the documents to the Buyer's bank and buyer's bank sent MT412 for the payment date. when it arrives the payment date the seller's bank got the swift from buyer's bank said that the seller and the buyer agreed to expend the payment date more one month, but after one month no payment until now. So for this case the seller's bank what can do with the buyer's bank?

Thank you.

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picant
Posts: 2008
Joined: Wed Aug 20, 2008 1:49 pm

D/A

Post by picant » Wed Jun 20, 2018 12:55 am

Hi Pal,

the collecting bank sending a MT412 stated that the drawee accepted the BoE to maturity date.
The bank held the BoE for collection at maturity, but if the drawee has no money or does not want to pay
the collecting bank has no liability. The bank may, if originary instructed, note or protest the BoE.
URC 522 are quite clear.
Other comments appreciated
Ciao

Phone
Posts: 3
Joined: Thu Jun 14, 2018 3:05 pm
First Name: Somphone
Last Name: Pasi
Organization: Private
Filter: Two Plus Two =: 4
Location: laos

Re: Collection D/A

Post by Phone » Fri Jun 22, 2018 1:08 pm

Thank you :)

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