Notice of Rejection

[VinodR]

The notice of rejection indicates all the discrepancies observed by the L/c issuing bank in the subject documents. However, for disposal instructions it refers to a clause of the credit instead. i.e., the advice of refusal MT-734 indicates, 'Please Refer to clause 47 A PT 6 Of the credit.

I reproduce hereunder the text of the referred clause of the L/c.

Notwithstanding the provisions of UCP 500, if we give notice of refusal of documents presented under this credit we shall however retain the right to accept a wavier of discrepancies from the applicant and subject to such waiver of discrepancies being acceptable to us, to release documents against the waiver without reference to the presenter provided that no written instructions to the contrary have been
received by us from the presenter before the release of the documents. Any such release prior to receipt of contrary instructions shall not constitute a failure on our part to hold the documents at the presenters risk and disposal, and we will have no liability to the presenter in respect of any such release.

Does this constitute as a proper rejection notice as per the provisions of Article 14, or the rejection notice must categorically fulfil all the criterion laid down under Article 14 without reference to another source or document.
regards,Khalid

[larryBacon]

Since the presenter would be aware of the clause mentioned in the LC, by making a presentation, it infers acceptance of this clause. The issuing bank has rejected listing discrepancies, so it has fulfilled its function in that respect. It also points out that under the terms of the LC, it has no obligation under the second part of Art 14 d ii to hold documents at the disposal of the presenter.
It still has an obligation, under Art 14 d i to expeditiously advise the presenter of its decision whether or not to refuse or return the documents.

Laurence