LC expired treated under collection

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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nura
Posts: 16
Joined: Fri Jan 30, 2009 12:25 pm

LC expired treated under collection

Post by nura » Fri Sep 04, 2009 10:40 am

Experts,
often the exporter make shipment of goods under expired letter of credit and the issuing bank send a message that they are treating the presentation under URC. in that case should the bank send a new instruction set to the issuing bank about how the document is to be handled? if the shipment is one by air, then how the exporter right will be protected.
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cristiand969
Posts: 754
Joined: Tue Aug 05, 2008 1:52 pm
First Name: Cristian
Last Name: D.
Organization: Bank
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Problem

Post by cristiand969 » Fri Sep 25, 2009 7:30 pm

Issuing bank has no right to treat the presentation on collection basis unless instructed by presenter.
Consider at least the charges different applied in L/C versus collection.
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