Documents lost in transit

[GSham]

As per article 35, if a nominated bank determines that a presentation is complying and forwards the documents to the issuing bank, the issuing bank must honour even when the documents have been lost in transit between the nominated bank and issuing bank.

Let us look at the following scenario:
- Issuing bank is in Country A;
- Place of expiry: Country B;
- Available with Bank X by negotiation.

Documents are presented by the beneficiary to Bank X’s branch in Country A. Bank X’s branch in Country A acts as processing agent for its branch in Country B, examines and forwards the documents, under the covering letter of its branch in Country B, to the issuing bank for payment.

When the documents are lost in transit, do you think article 35 would apply?

Please note that the documents are lost in transit between Bank X’s branch in Country A and the issuing bank, not between Bank X’s branch in Country B and the issuing bank.

[DanielD]

Documents were not lost between the nominated bank and the issuing bank but between "another" bank and the issuing bank
Daniel