Article 6 of URR525

AsifMahmoodButt · Post by **AsifMahmoodButt** » Wed Jan 02, 2008 12:00 am

MT740 is restricted in favor of Bank A but the claim was received from Bank B. The Reimbursing Bank approached issuing and honored the claim after receiving authority from issuing bank to pay the claim. Subsequently, second claim from Bank B received under the credit. Should the reimbursing bank again contact the issuing bank for instructions or pay the claim based on instructions to pay the previous claim.

Regards
Akhtar

JLee · Post by **JLee** » Mon Jan 07, 2008 12:00 am

In the absence of clear indication from the issuing bank, I wouldn't assume that the issuing bank has given the authority to honour further claims from Bank B. On the other hand, I think each claim is independent.
Jack Chan

polterd · Post by **polterd** » Tue Jan 08, 2008 12:00 am

Akhtar,
For each claim received from other bank than bank A, the reimbursing bank must ask for issuing bank's authorization.
Regards,
Bogdan