Recovery of payment through bank under URC 522

RajivGupta · Post by **RajivGupta** » Sun Dec 31, 2000 12:00 am

Documents have been sent by an Indian bank to a bank in US under URC 522. B/L was consigned to the order of US bank. Documents have been released to the buyer after signature on 180 days usance bill. Buyer has failed to pay. Indian bank is pursuing with US bank but without success. what is the recourse for the Indian bank and shipper. Please respond via email at rajivgupta2001@yahoo.com

KashifZaidi · Post by **KashifZaidi** » Thu Jan 11, 2001 12:00 am

If the documents were released as per the instructions of beneficiary's bank, there is nothing much u can do. The beneficiary bank may ask applicant's bank to forward photocopy of accepted bill of exchange of applicant, the said Accepted B/E may be contested throuh court of law under the terms of Negotiable Instruments ACt (In applicants country). Definitely the US bank would charge to perform these duties on your behalf.
[edited 1/16/01 5:03:05 PM]

AbdulkaderBazara · Post by **AbdulkaderBazara** » Fri Jan 26, 2001 12:00 am

If the collecting bank i.e. the US bank has followed the instruction of the remitting bank (the Indian Bank)in delivering documents to the drawee (buy) against acceptance of the draft, then there is nothing much to be done by the US Bank. On request by the Indian Bank, the US Bank may either forward the original draft duly accepted by the drawee to the Indian Bank or its appointed agents to produce it to the court of law and sue the drawee. The US Bank may act on behalf of the Indian Bank at the cost of the latter.

T.O.Lee · Post by **T.O.Lee** » Thu Jun 14, 2001 1:00 am

The enquirer has not mentioned whether the collection is D/A 180 days or D/P 180 days. If it is against D/P, the collecting bank (not to be referred to as the "Applicant's Bank" here and it should mean the "Drawee's Bank" simply because the parties are not dealing with DC and in documentary collections, the buyer is a "Drawee" and not an "Applicant") should not release the documents without getting payment from the buyer for D/P 180 days sight.

The collection instructions should have mentioned whether in case of non-payment, it is necessary to perform "noting" or "protest" or not. If such instructions are given, then the parties should perform the noting or protest in order to retain the right of recourse under the Bills of Exchange Act 1882 or equivalent laws.

There are many variations in this particular case and unlsss the full details of this collection are available, we cannot comment further.

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[edited 4/2/02 9:24:27 PM]