Best Trade Solution

Hello,

An LC was issued by an issuing bank, confirmed by a confirming bank under IRU of a reimbursement bank (subject to URR 725).
Beneficiary presented a set of documents to confirming bank that found it compliant.
Issuing bank found discrepancies in the presented documents.

Confirming bank sent a claim to reimbursing bank.
In that case, does the reimbursement bank is obliged to pay the confirming bank ?

Best regards

Hi Pal,

reimbursing bank must pay, if the nominated bank made a mistake in checking documents, will be sued or
at least object of discussion. I dare say that the most of discrepancies
, if no so evident, may only represent a different point of view.
If you have more documentation, deleting naturally sensitive data, please post here.
Ciao

Hi,

LC Is issued as
Tenor at 90 days sight, available with SCBL Singapore.

>SCBL Singapore found discrepancy in submitted document by beneficiary for discounting dt. 01.09.2020.

>Before discounting the discrepancy documents SCBL Singapore, obtained acceptance from LC issuing bank notifying through swift. (date 04.09.2020)

>Documents are discounted and send the documents to issuing bank quoting discrepancies and asking due date of documents as on 01.09.2020 + 90 days i.e 30.11.2020.

> The applicant bank quotes the due date as document received on the bank as on 10.09.2020 +90 i.e 09.12.2020


Which due date is correct negotiating bank or LC issuing bank.

regards

Hi Pal,

as per ISBP 745 B4,5,6,7 date starts from 04.09 as the issuing bank waives discrepancy.
However to cover this gap normally days of grace were added.
Other comments appreciated
Ciao