Article 19 - Partial payments -URC 522

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dinesh2476
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Article 19 - Partial payments -URC 522

Post by dinesh2476 » Sun Aug 14, 2022 6:09 pm

Hi Expert,

Good day.

We request your support in understanding 1st paragraph on partial shipments

a. In respect of clean collections..................................thereof has been received.

Pls help share it with necessary examples.

Thanks & Regards
Dinesh Kumar

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picant
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Re: Article 19 - Partial payments -URC 522

Post by picant » Mon Aug 15, 2022 2:43 am

Hi Pal,

A bill of exchange may be paid partially and, if required, protested for the unpaid balance.The importance is that the collecting bank will deliver the item only after a complete payment.
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dinesh2476
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Article 19 - Partial payments -URC 522

Post by dinesh2476 » Sat Aug 20, 2022 1:54 pm

Hi Chief

thanks for your explanation

As I have never experienced processing collection transactions, request your support in elaborating this article

Article 19 - in respect of clean collection(financial documents not accompanied by commercial documents), partial payments may be accepted if and to the extent to which and on the condition on which partial payments are authorized by the law in force in the place of payment. The financial documents will be released to the drawee only when full payment has been received.

b. In respect of documentary collections, partial payments will only be accepted if specifically authorized in the collection instruction. However, unless otherwise instructed, the presenting bank will release the documents to the drawee only after full payment has been received.

This article underscores the documents both financial documents and commercial documents will be released only upon full payment.

However, with regard to partial payment 19(a) and 19(b) differs. any specific reason?

requesting an expert opinion, in practice, How does partial payment concepts work in the collection?

Thanks & Regards
Dinesh

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picant
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Re: Article 19 - Partial payments -URC 522

Post by picant » Sat Aug 20, 2022 7:51 pm

Hi Pal,

first of all, I hope that our "conversation" will not remain a dialog between us and that some members of this forum decide to partecipate.
However, assuming that you have a clean collection, an invoice or a bill of exchange with no protest clause,drawee may pay in instaltments asthe goods have been already taken up, prepared and even sold.

in a documentary collections, documents must be withdrawn to take up the goods and in case of no payment even sold to another buyer, so the required authorization by the seller.


Other unknown- Comments appreciated-ciao

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