May I have views on under which circumstances the nominated bank decline its nomination?
Regards,
Decline nomination
Decline nomination
Shahed
You are being far too vague here. I assume you have a case in mind.
A bank declining its nomination is not obligated to explain itself noting of course that if a bank has already either confirmed that credit or otherwise expressly committed itself to act outside of confirmation as recognised within sub-article 12a, then it could not decline its nomination
Andy
You are being far too vague here. I assume you have a case in mind.
A bank declining its nomination is not obligated to explain itself noting of course that if a bank has already either confirmed that credit or otherwise expressly committed itself to act outside of confirmation as recognised within sub-article 12a, then it could not decline its nomination
Andy
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HOANGTHIANHTHU
- Posts: 8
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Decline nomination
Hi,
I think sub-article 12 (a) can help answer your question.
A nominated bank is not obliged to act on its nomination, i.e., to honour or negotiate unless (i) it has added its confirmation to the L/C, or (ii) it has communicated to the beneficiary that it agrees to act on its nomination.
The reasons why the nominated bank declines its nomination may vary:
(i) its policy preventing it from acting on its nomination;
(ii) the issuing bank having no credit line with the nominated bank;
(iii) the nominated bank is afraid of non-reimbursement risk; or
...
Kind regards,
N.H.Duc
I think sub-article 12 (a) can help answer your question.
A nominated bank is not obliged to act on its nomination, i.e., to honour or negotiate unless (i) it has added its confirmation to the L/C, or (ii) it has communicated to the beneficiary that it agrees to act on its nomination.
The reasons why the nominated bank declines its nomination may vary:
(i) its policy preventing it from acting on its nomination;
(ii) the issuing bank having no credit line with the nominated bank;
(iii) the nominated bank is afraid of non-reimbursement risk; or
...
Kind regards,
N.H.Duc