Article 16 - Discrepant Documents, Waiver and Notice

[dinesh2476]

c. When a nominated bank acting....
The notice must state:

b) that the issuing bank is holding the documents until it receives a
waiver from the applicant and agrees to accept it, or receives further instructions from the presenter
prior to agreeing to accept a waiver;

Situations:
Presenting bank cover letter is silent- presenting bank received payment with deduction of discrepancy fee from the issuing bank, when enquired, it was told that IB contacted applicant for waiver of discrepancies and the payment made post waiver of discrepancies with deduction of charges

Presenting has not been given chance a to validate the discrepancies and rectify the discrepancies given in the payment message

Is this a right approach?
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d) that the bank is acting in accordance with instructions previously received from the presenter.

Presenting bank cover letter states- Please contact applicant for acceptance of discrepancies if any
Presenting bank has not received refusal notice,hence claimed presentation comply with LC terms.
However, issuing bank stated that they were in touch with applicant as per cover letter instructions,hence presenting bank cannot claim with the below article

f. If an issuing bank or a confirming bank fails to act in accordance with the provisions of this article, it shall be precluded from claiming that the documents do not constitute a complying presentation

Is this a right approach?

Thanks & Regards
Dinesh

[picant]

Hi Pal,

Opinion TA700 R741 states that, if the l/c wording contains a clause concerning discrepancy fees, the issuing bank may, in the check period of 5 days, pay the net proceeds only indicating in the message the discrepancy found(accepted by applicant).
Please trace said opinion for further comment.
Ciao