Is our duty to refund alive?

SOOEYOUNKIM · Post by **SOOEYOUNKIM** » Mon May 07, 2012 1:00 am

Dear sir,
I urge you to give me an advice for solution of followng problems..
.
AAA : issuing bank
BBB : we (nego bank)
CCC : reim bank
.
1) L/C indicates 53A(reim bank) : CCC bank
2) L/C indicates also(78 field) : nego bank to claim on the reim bank value 7 working days from the nego date.

3) however, we(nego bank, BBB) claimed reim on the reim bank value spot (sight claim) (no value date is written in the MT742)

4) So, We(nego bank, BBB) received total fund from the reim bank shortely after claming reim.

5) Issuing bank (AAA) insists that the nego bank (BBB) Should refund the proceeds to them and re-claim the proceeds applying value 7 working days as insturcted in the credit.

--

Then,
1) Do we (BBB) have to refund proceeds?
2) is it natural that we regard the
fund from the reim bank(CCC) as being made on a without recourse basis?

Looking forward to hearing from you, specialists.
[edited 5/7/2012 10:25:04 AM]

NigelHolt · Post by **NigelHolt** » Mon May 07, 2012 1:00 am

At the very most, you need simply to pay the issuing bank 7 days interest. The idea of re-funding and re-claiming is just ridiculous.
[edited 5/7/2012 10:41:27 AM]