Acceptance by a bank or an applicant?

SOOEYOUNKIM · Post by **SOOEYOUNKIM** » Thu Sep 06, 2012 1:00 am

Hello.

I would like to have your professional opinions of following discussion.

1. Docs negotiated on a basis of usance basis.
2. discrepancy advised to us
3. docs accepted.
.
In this case, could we regard the acceptance "by the issuing bank"?
or it is an acceptance by an applicant ?
.

Maybe depends on?

Anybody's help will be appreciated.

Thank you !!

svishu · Post by **svishu** » Thu Sep 06, 2012 1:00 am

If the LC has been issued subject to UCP and your presentation of documents are under UCP, the acceptance message received from the issuing bank is deemed to be from the issuing bank and not the applicant. However some banks provide an acceptance which states " documents have been accepted by the applicant " . This is not a correct acceptance message and can lead to unwarranted disputes and correspondences . The issuing bank needs to be told to send the correct accptance message.
Best regards

GlennRansier_olsABN · Post by **GlennRansier_olsABN** » Thu Sep 06, 2012 1:00 am

If the issuer sent such a message they are obligated to honour the presentation at maturity.

ANeves · Post by **ANeves** » Mon Sep 10, 2012 1:00 am

If the applicant waives the discrepancies noted and the waiver is accepted by the issuing bank, he is supposed to take up the documents from the issuing bank.
Delivery of documents to the applicant makes the issuer liable to honour, even if its message is not, in some occasions, as clear as it should be.

SOOEYOUNKIM · Post by **SOOEYOUNKIM** » Tue Sep 11, 2012 1:00 am

Thank you for excellent replies.

Of great help to us.