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Please share your opinions
A documentary credit having these terms among others:

41d:Available with...By..
Any Bank by Negotiation

42c:Draft at 180 days sight
D
ocs.present with in the credit stipulating date to the presenting Bank.
On November 18,2007 Issuing Bank received discrepant docs.from presenting Bank(Docs value>Credit Value) and on November 21,2007 Issuing Bank send discrepancy notice to the Presenting Bank mentioning this discrepancy.Presenting Bank then replace the discrepant docs.and Issuing bank Provide their acceptance Notice to the Presenting Bank.One thing is that Presenting Bank inserted date November 02,2007 in their replacing docs forwarding Schedule which the Issuing Bank received on December 02,2007.Issuing Bank Count the Maturity date as May 31,2008 and send the acceptance notice to the presenting Bank declaring the Maturity date May 31,2008.But on May 04, Presenting Bank asked the Issuing Bank that according to their calculation maturity date is on April 02,2008 and ask interest+ Bill value for the period.
There is no indication of interest for the overdue period in the L/C.
Now Plese solicit your opinion regarding Issuing Bank and Presenting Bank.Who is right or wrong.
Thanks
zakir

dear zakir,
i can see to issues here..

1. a deferred lc available by negotiation.. im not sure abt this. anybody?

2. what was the date of the draft? there should be some additional condition regarding calculating maturity date like 180 days from the date of BL. please provide the details

regd

shahriar

DEAR SIR,
HERE I FURNISH BELOW MY THOUGHT:
SINCE DRAFT REQUIRED: 180 DAYS SIGHT,AND DOCUMENT CONSTITUTE DISCREPENT: ISBP PARAGRAPH 46 (B) IS APPLICABLE.
QUOTE:
IN CASE OF NON COMPLYING DOCUMENTS WHERE THE DRAWEE BANK HAS PROVIDED A NOTICE OF REFUSAL AND SUBSEQUENT APPROVAL, AT THE LATEST XXX DAYS AFTER THE DATE OF ACCPTANCE OF THE DRAFT BY THE DRAWEE BANK. THE DATE OF ACCEPTANCE OF DRAFT MUST BE NO LATER THAN THE DATE ACCEPTS THE WAIVER OF APPLICANT'
.
FROM ABOVE PARAGRAPH WE CAN INFER THAT DATE OF ACCEPTANCE OF THE ISSUING BANK IS THE DETERMINATOR FACTOR.
.
I THINK THE MATURITY DATE SHOULD BE FROM THE DATE OF ACCEPTANCE BY THE ISSUING BANK.
THNAKS
NESAR

DEAR SHAHARIER,
NEGOTIATION CREDIT CAN TAKE TWO FORM:

1.SIGHT NEGOTIATION CREDIT
2. USANCE NGOTIATION CREDIT.
THNAKS
NESAR

For shariar:
I can not rememer the date of draft.But please consider the other factor.L/C is 180 days sight basis.Should I consider from the date of draft date .Another important point Issuing Bank served discrepancy notice and Presenting Bank again present the doc.Please see my original posting.

For Nesar:
More specific,please

dear zakir,

im confused with the issue to be honest. to me the fact is like this.

180 days sight. that means acceptance will be issued form the date of presentation, precisely from the day when the issuing bank receives a complying presentation. refer to ISBP 46

46. For drafts drawn "at XXX days sight", the maturity date is established as follows:
a. in the case of complying documents, or in the case of non-complying documents where the drawee bank has not provided a notice of refusal, the maturity date will be XXX days after the date of receipt of documents by the drawee bank.
b. in the case of non-complying documents where the drawee bank has provided a notice of refusal and subsequent approval, at the latest XXX days after the date of acceptance of the draft by the drawee bank. The date of acceptance of the draft must be no later than the date the issuing bank accepts the waiver of the applicant.

i have used the term "issuing bank receives a complying presentation" coz this is a lc available by negotiation, not acceptance.

shahriar

Dear Zakir vai,
my first answer went into a basis of non complying document. your case is a bit different. sorry for that.
summary of your case:
credit available by negotiation
draft: 180 days sight
nominated bank present discrepent document then
issuing bank provides discrepent notice as per sub article 16(c)
nominated bank present corrected document. later on followed by different forwarding schedule with different date .
your query: from which point payment date will be count"

assumption: the beneficiary present the corrected document within the expiry of the credit.
if the assumption is correct based on the above fact, then the documents turns to complying presentation.i.e. the issuing bank has nothing to do but to inform its payment date. since now document constitute complying presentation, then automatically paragraph 46(a) will definately applicable. and the maturity date should be from the date of corrected documents received by the issuing bank.
.
date of draft is not a salient factor here.
.
pls be remember, if credit required: draft,180 days from the b/l date, then the payment date should be count from the date of b/l irrespective of complying document or non complying document later on accepted by the issuing bank...
awaiting for your thought on that issue.
.

thnaks
nesar