hi, every body
Can you give us some opinion about protest for non-payment/non-acceptance?
1. procedure for protesting
2. in case of D/A, If a bank elects, for any reason, not to handle protest instructions, it must advise to the remitting bank. Meanwhile, can it advise the docs to the drawee?
And if the drawee accepts the docs, can it release the docs before receiving further instruction from remitting bank?
Pls give us any idea about this matter!
thanks alot
protest for non-payment/acceptance
-
PhanThanhNhan
- Posts: 102
- Joined: Fri Apr 05, 2019 5:23 pm
protest for non-payment/acceptance
Hello,
1) It depends on the local law at the place where presenting bank is located
2) Presenting bank first of all shall deliver documents against payment/acceptance. If drawee is not willing to accept drafts and presenting bank ("PB") is not on position to follow "protest instructions" of remitting bank (RB), PB informs RB accordingly. In case, drawee accepts documents afterwards and any additional instructions of RB were not received meanwhile, PB is considered to fulfil initial collection instructions.
If you have specific situation, I would appreciate additional details on it.
With kindest regards,
Sergey
1) It depends on the local law at the place where presenting bank is located
2) Presenting bank first of all shall deliver documents against payment/acceptance. If drawee is not willing to accept drafts and presenting bank ("PB") is not on position to follow "protest instructions" of remitting bank (RB), PB informs RB accordingly. In case, drawee accepts documents afterwards and any additional instructions of RB were not received meanwhile, PB is considered to fulfil initial collection instructions.
If you have specific situation, I would appreciate additional details on it.
With kindest regards,
Sergey
protest for non-payment/acceptance
Dear Phan,
Let me please try to answer your below queries:
1. procedure for protesting
Procedure for protesting against a Negotiable Instrument i.e., Bills of Exchange generally governs through a dedicated law, which may vary from country to country or region to regions. However, it depends, which law is prevailing in which country or region. For example, in most of the Asian countries Negotiable Instrument Act prevails whereas in European countries it is applicable with the name of Bills of Exchange Act. Similarly, it known in USA with the name of Uniform Commercial Code.
2. in case of D/A, If a bank elects, for any reason, not to handle protest instructions, it must advise to the remitting bank. Meanwhile, can it advise the docs to the drawee?
And if the drawee accepts the docs, can it release the docs before receiving further instruction from remitting bank?
A bank not elects to handle protest instructions must advise to the remitting bank and upon clearance from them they may advise / release the docs to the drawee without any engagement at their part. However, this should be done based on the authority / clearance first obtain from the remitting bank.
Hope this works.
Regards,
Sohail
Let me please try to answer your below queries:
1. procedure for protesting
Procedure for protesting against a Negotiable Instrument i.e., Bills of Exchange generally governs through a dedicated law, which may vary from country to country or region to regions. However, it depends, which law is prevailing in which country or region. For example, in most of the Asian countries Negotiable Instrument Act prevails whereas in European countries it is applicable with the name of Bills of Exchange Act. Similarly, it known in USA with the name of Uniform Commercial Code.
2. in case of D/A, If a bank elects, for any reason, not to handle protest instructions, it must advise to the remitting bank. Meanwhile, can it advise the docs to the drawee?
And if the drawee accepts the docs, can it release the docs before receiving further instruction from remitting bank?
A bank not elects to handle protest instructions must advise to the remitting bank and upon clearance from them they may advise / release the docs to the drawee without any engagement at their part. However, this should be done based on the authority / clearance first obtain from the remitting bank.
Hope this works.
Regards,
Sohail
protest for non-payment/acceptance
Re:
1. agree with the two postings immediately above. I would add that protesting -at least under English law- does not achieve anything of real use for the drawer. Furthermore, trying to recover one’s charges from the remitting bank often proves impossible, whatever URC Art. 24 says. This is why many banks now refuse to protest a bill as a matter of policy.
2. I agree with Sergey but not Sohail. While Art. 1(c) obliges a PB to notify the RB it does not stop it from handling the collection. Although not stated in URC protest is to be regarded, in my view, in the same way as insuring / storing goods in Art. 10(b).
[edited 8/15/2011 1:31:54 PM]
1. agree with the two postings immediately above. I would add that protesting -at least under English law- does not achieve anything of real use for the drawer. Furthermore, trying to recover one’s charges from the remitting bank often proves impossible, whatever URC Art. 24 says. This is why many banks now refuse to protest a bill as a matter of policy.
2. I agree with Sergey but not Sohail. While Art. 1(c) obliges a PB to notify the RB it does not stop it from handling the collection. Although not stated in URC protest is to be regarded, in my view, in the same way as insuring / storing goods in Art. 10(b).
[edited 8/15/2011 1:31:54 PM]