Overnight courier

[melissachin]

Credit has the following instructions to the negotiating bank:-

'Negotiating bank is to forward documents to us in one mail by overnight courier.'

I would be grateful if someone could explain the phrase...I think the issuing bank requires the negotiating
bank to despatch the docs the same day/evening of the negotiation but I am not sure if I am right.

Thank you.

[larryBacon]

All too often an advising bank will assume their own interpretation of an ambiguous clause or of dubious meaning in an L/C to be correct. This merely postpones the inevitable dispute until presentation of documents.

Unfortunately, when the advising bank is not also the nominated bank, it can effectively "pass the buck" of such questionable clauses to the nominated bank simply by virtue of its inaction.

This is an example of such a clause, but Article 12 deals with this by instructing the advising bank to seek clarification from the issuing bank. However, this Article is invoked infrequently, and in my experience, often only when queried by the beneficiary, or after documents have been presented.

The clear intent of this Article is to prevent rather than cure such difficulties.

[T.O.Lee]

This unclear and imprecise instruction "by overnight courier" should be better reworded as "by courier service within X day(s) following the date of negotiation".

We are from http://www.tolee.com

[edited 8/9/01 5:04:02 PM]