Hi everyone!
I would very much appreciate if you could provide me with some info and clarification (best to your knowledge) regarding some issues that we have stumbled upon:
Please note, L/C's (oil business) relevant clauses are:
a) Presentation of 1 original and 2 copies of documents unless otherwise specified
b) TELEX/SWIFT document A and document B acceptable
c) The nominated bank is to send documents in one lot by courier to our address as quoted...
d) Upon receipt at issuing bank's counters of nominated bank's duly tested telex or swift certifying that you have taken up and sent to our address documents issued in strict conformity with L/C's terms and conditions, we shall cover you at maturity date as per your instructions...
1. How would you interpret part of the fourth L/C clause that a nominated bank must certify that it have taken up documents? As that it had received documents from bnf or that it had incur its def payment undertaking?
2. How would you interpret following L/C clause: "TELEX/SWIFT document A and document B acceptable"? As TELEX/SWIFT document A and document B acceptable instead of originals, or that you are supposed to send document A and document B by fax, and issuing bank shall find it acceptable?
3. Is it usual to receive documents by fax/email from bnf, and than sent it the same way (by fax/email) to issuing bank requesting payment (original documents shall be presented and sent to issuing bank after payment has been effected)? If so, is it done through authenticated fax/encrypted email or just regular fax/email? Has payment been effected in such cases and was it on time?
4. According to L/C terms, nominated bank is supposed to send SWIFT msg to issuing bank confirming that it have taken up and sent documents strictly compliant to L/C's terms to issuing bank's address requesting payment. If it had received documents by fax/email from bnf, and than sent it the same way (by fax/email) to issuing bank, what would it state in that SWIFT msg? Would you send that SWIFT msg at all or would you wait for original documents to be presented ?
Thank you in advance for your time and input.
sending dox and requesting payment by fax
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HOANGTHIANHTHU_invalid
- Posts: 189
- Joined: Fri Apr 05, 2019 5:15 pm
sending dox and requesting payment by fax
Hi,
It is not easy to give a correct answer without seeing the L/C.
1. My understanding is that the L/C is available with the nominated bank by deferred payment and the nominated bank which agrees to act on its nomination is requested to send the issuing bank a swift message certifying that it has taken up the (complying) documents, i.e., incurred its deferred payment undertaking.
2. Telex/Swift document A and document B are understood to be originals (i.e., the originals advised to the beneficiary by the advising bank). Please note when L/C requires presentation of one document, it will be understood to be requirement for an original document.
3. Where L/C requires the nominated bank to send the required documents to the issuing bank for payment/reimbursement, the nominated bank must send the documents as required in the L/C. If they are originals then all originals must be sent. Where L/C allows the nominated bank to claim reimbursement by telegraphic transfer, the nominated bank would be required to send the issuing bank an authenticated swift message certifying that the documents are complying and are being sent to the issuing bank by courier service.
4. The documents received by fax/email are not treated as originals, hence, the nominated bank cannot determine the compliance of documents based on such documents unless the L/C allows presentation of photocopied/scanned documents.
Kind regards,
N.H. Duc
[edited 11/10/2016 3:13:19 AM]
It is not easy to give a correct answer without seeing the L/C.
1. My understanding is that the L/C is available with the nominated bank by deferred payment and the nominated bank which agrees to act on its nomination is requested to send the issuing bank a swift message certifying that it has taken up the (complying) documents, i.e., incurred its deferred payment undertaking.
2. Telex/Swift document A and document B are understood to be originals (i.e., the originals advised to the beneficiary by the advising bank). Please note when L/C requires presentation of one document, it will be understood to be requirement for an original document.
3. Where L/C requires the nominated bank to send the required documents to the issuing bank for payment/reimbursement, the nominated bank must send the documents as required in the L/C. If they are originals then all originals must be sent. Where L/C allows the nominated bank to claim reimbursement by telegraphic transfer, the nominated bank would be required to send the issuing bank an authenticated swift message certifying that the documents are complying and are being sent to the issuing bank by courier service.
4. The documents received by fax/email are not treated as originals, hence, the nominated bank cannot determine the compliance of documents based on such documents unless the L/C allows presentation of photocopied/scanned documents.
Kind regards,
N.H. Duc
[edited 11/10/2016 3:13:19 AM]