LC calls for and Inspection Certificate and signature of the signing party to be verified by the negotiating bank.
Documents have been presented to the issuing bank with signature on the inspection certificate verified by the negotiating bank along with copy of the passport of the signing individual (not called for in the LC).
Upon scrutiny by the issuing bank it is observed that the signature that appears on the inspection certificate and the copy of the passport (which was not called for in the LC) included in the presentation are totally different.
What should be the stand of the issuing bank?
[edited 7/14/2009 6:50:16 PM: clarity]
Inspection Certificate
Inspection Certificate
By what means did the credit require that the negotiating bank verify the inspection certificate signer's signature?
Inspection Certificate
The clause goes on like:
Inspection Certificate issued and signed by Mr.xxx holder of xx Passport No certifying that the goods have been inspected and found to be in good order and condition, whose signature appearing on the Inspection Certificate to be verified by a bank in beneficiary's country and in evidence a notation reading "signature verified" and bearing the stamp and signature of the verifying bank must appear thereon.
Inspection Certificate issued and signed by Mr.xxx holder of xx Passport No certifying that the goods have been inspected and found to be in good order and condition, whose signature appearing on the Inspection Certificate to be verified by a bank in beneficiary's country and in evidence a notation reading "signature verified" and bearing the stamp and signature of the verifying bank must appear thereon.
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HOANGTHIANHTHU_invalid
- Posts: 189
- Joined: Fri Apr 05, 2019 5:15 pm
Inspection Certificate
Hi,
I think the document is acceptable if the signature is verified by the negotiating bank in the manner as required. The copy of passport presented should be disregarded as per Article 14 (g).
What’s more. The L/C does not require that the signature on the inspection certificate must match the signature on the passport.
Best regards,
N.H. Duc
I think the document is acceptable if the signature is verified by the negotiating bank in the manner as required. The copy of passport presented should be disregarded as per Article 14 (g).
What’s more. The L/C does not require that the signature on the inspection certificate must match the signature on the passport.
Best regards,
N.H. Duc
Inspection Certificate
I agree with N.H. Duc. As a result I believe that the stance of the issuing bank should be that there is not any reason to refuse honour by reason of the terms of the credit not having been complied with.
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YAATULOLAIA
- Posts: 5
- Joined: Fri Apr 05, 2019 5:30 pm
Inspection Certificate
If required signuture verification, then there is somthing to be verified against something ie: signature on Inspection Certificate must be verified against signature on hte passport or on the Resident Identification card otherwise it could be fraudulant if someone just verified it without supporting documents. That is why we need KYC to make sure athenticity of the documents.
Inspection Certificate
I take it that data in the passport copy conflicts with data in the inspection certificate. If so, is the conflict to be disregarded under 14d because the passport copy is not a stipulated document? (Note in this regard that 14d starts with "Data in a document...", not "Data in a stipulated document...".)
What if the passport copy was included as part of the signature verification?
Does 14g mean what it says or is its "disregard" language overridden by the no conflict language in 14d? Recall that the Banking Commission recently opined that the "disregard language in 14h was overridden by the no conflict language in 14d.
Regards, Jim Barnes
What if the passport copy was included as part of the signature verification?
Does 14g mean what it says or is its "disregard" language overridden by the no conflict language in 14d? Recall that the Banking Commission recently opined that the "disregard language in 14h was overridden by the no conflict language in 14d.
Regards, Jim Barnes
Inspection Certificate
Thanks to every one who had provided their response to this query.
As mentioned by Mr.Jim Barnes, in this case there is a very clear evidence that the documents are not in agreement with one another (even when the copy of passport has not been called for in the credit), how could the issuing bank ignore this fact as this would add to its credit risk?
Let me add a twist to this:
What would be the stand of the issuing bank, if the negotiating bank had only added "Verified" instead of the words as called for in the LC "Signature Verified"?
As mentioned by Mr.Jim Barnes, in this case there is a very clear evidence that the documents are not in agreement with one another (even when the copy of passport has not been called for in the credit), how could the issuing bank ignore this fact as this would add to its credit risk?
Let me add a twist to this:
What would be the stand of the issuing bank, if the negotiating bank had only added "Verified" instead of the words as called for in the LC "Signature Verified"?
Inspection Certificate
I cannot see that ‘add[ing] to the [issuing bank’s] credit risk’ is of any relevance to determining the compliance of the documents.
I would observe that the credit did not expressly require that the signature was verified against the signatory’s passport, let alone that a copy of it accompanied the documents forwarded to the issuing bank. Therefore, on a strict reading of the credit terms and UCP600 I still do not see any scope for refusal.
On the other hand, the nominated bank -from its actions- appears to have taken the opposite view. Therefore, the nominated bank seems to have left itself open to a refusal by the issuing bank on the grounds that the two signatures differ.
Incidentally, the case of Gian Singh & Co Ltd v Banque de l’Indochine [1974] might be of interest as this concerned a credit apparently requiring a certificate signed by Balwant Singh holder of Malaysian Passport E. 13276; the certificate presented was a forgery. The limited information I have about the case (Doc. Credits by Jack) suggests that the English court was of the view that the nominated bank was obliged to verify the signature against the passport (and had not been negligent when it did so).
[edited 7/29/2009 1:27:28 PM]
I would observe that the credit did not expressly require that the signature was verified against the signatory’s passport, let alone that a copy of it accompanied the documents forwarded to the issuing bank. Therefore, on a strict reading of the credit terms and UCP600 I still do not see any scope for refusal.
On the other hand, the nominated bank -from its actions- appears to have taken the opposite view. Therefore, the nominated bank seems to have left itself open to a refusal by the issuing bank on the grounds that the two signatures differ.
Incidentally, the case of Gian Singh & Co Ltd v Banque de l’Indochine [1974] might be of interest as this concerned a credit apparently requiring a certificate signed by Balwant Singh holder of Malaysian Passport E. 13276; the certificate presented was a forgery. The limited information I have about the case (Doc. Credits by Jack) suggests that the English court was of the view that the nominated bank was obliged to verify the signature against the passport (and had not been negligent when it did so).
[edited 7/29/2009 1:27:28 PM]