I would welcome your comments on this case of mine.
My bank A received an inward collection (not under LC)
from a bank in India.Upon examining the documents,
the invoice has another bank's address B on it.
The drawee is not one of our customers &
he seems to be residing in another state, my
colleaque suggested that we send the documents
directly to the other bank B to collect the proceeds.
I would like to enquire as to whether this is the right
course of action to take or should we seek authorisation
from the collecting bank first.
Thank you.
Query under URC522
Query under URC522
I would anticipate sub-Article 5f would provide the answer.
Query under URC522
ALWAYS ADVISABLE TO CLARIFY AND ASK FOR NEW INSTRUCTIONS
Despite the power under URC 522 Article 5 (f) for a collecting bank to nominate a presenting bank freely if the presenting bank is not specified by the remitting bank, as sugested by Jeremy, yet from our experience in dealing with international collections dipsutes, it is ALWAYS safe to contact the remitting bank to clarify any doubt and seek new instructions, where necessary.
BETTER SPARE FIVE MINUTES NOW TO AVOID SPENDING ONE YEAR TO RESOLVE DISPUTES LATER
A SWIFT message would only take five minutes to draft whereas a dispute would take years to resolve. If the amount is big, we would suggest not to rely on the URC 522 too much. This is from risk management point of view rather than from URC 522.
http://www.tolee.com
[edited 10/15/01 5:48:29 PM]
Despite the power under URC 522 Article 5 (f) for a collecting bank to nominate a presenting bank freely if the presenting bank is not specified by the remitting bank, as sugested by Jeremy, yet from our experience in dealing with international collections dipsutes, it is ALWAYS safe to contact the remitting bank to clarify any doubt and seek new instructions, where necessary.
BETTER SPARE FIVE MINUTES NOW TO AVOID SPENDING ONE YEAR TO RESOLVE DISPUTES LATER
A SWIFT message would only take five minutes to draft whereas a dispute would take years to resolve. If the amount is big, we would suggest not to rely on the URC 522 too much. This is from risk management point of view rather than from URC 522.
http://www.tolee.com
[edited 10/15/01 5:48:29 PM]