request recall of negotiation after acceptance?
request recall of negotiation after acceptance?
If an L/C issuing bank sends an advice of acceptance to the negotiating bank advising due date, and the negotiating bank then wishes to recall the documents (without reason), what do you believe are the issuing banks responsibilities around returning documents?
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CarmelBorg
- Posts: 21
- Joined: Fri Apr 05, 2019 5:13 pm
request recall of negotiation after acceptance?
Tracy
An unusual occurance indeed. I believe the issuing bank is under no obligation to comply. Is the credit applicant aware of the reason for this recall? Perhaps the documents are no longer in the issuing bank's possession.
Regards
Carmel
An unusual occurance indeed. I believe the issuing bank is under no obligation to comply. Is the credit applicant aware of the reason for this recall? Perhaps the documents are no longer in the issuing bank's possession.
Regards
Carmel
request recall of negotiation after acceptance?
Tracy, I would have thought that if an issuing bank had sent an advice of honour to the presenter it would have delivered the documents to the applicant at the same time and as a result not be in a position to return them.
My main concern in these circumstances -if most unusually I were in a position to return the documents- would be to obtain a discharge of my bank's obligatons in respect of the advice of honour in exchange for returnng the documents. I would also give some thought to what, if anything, had been said to the applicant about the presentation. If it had been intimated to the applicant a presentation had been made & honoured I might well want the applicant's agreement too.
Regards, Jeremy
My main concern in these circumstances -if most unusually I were in a position to return the documents- would be to obtain a discharge of my bank's obligatons in respect of the advice of honour in exchange for returnng the documents. I would also give some thought to what, if anything, had been said to the applicant about the presentation. If it had been intimated to the applicant a presentation had been made & honoured I might well want the applicant's agreement too.
Regards, Jeremy