Issuing bank has sent an authenticated message (799) merely stating the due date along with bill amount without mentioning ' On maturity we shall remit the proceeds',
Consequently just before the due date of payment issuing bank returns the full set original documents stating that the applicant has refused to accept the documents, when the negotiating bank refuted the action of issuing bank, the issuing bank has replied stating that they had only mentioned the due date of the bill and have not confirmed in their 799 that on maturity they would remit the proceeds. Hence they were not liable to pay as it was not a MT754/MT752.
Please advise if the action of issuing bank was right in this regard, Thanks
[edited 10/20/2008 6:06:13 PM]
Payment on Due date
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ThuHoangAnh_
- Posts: 58
- Joined: Fri Apr 05, 2019 5:28 pm
Payment on Due date
Hi,
If before confirming the due date of the bill, the issuing bank had not refused the documents in accordance with Article 16, it is obligated pay the bill when due except for the case where the presenter forwarded the discrepant documents to the issuing bank on approval basis subject to URC 522.
Best regards,
N.H. Duc
If before confirming the due date of the bill, the issuing bank had not refused the documents in accordance with Article 16, it is obligated pay the bill when due except for the case where the presenter forwarded the discrepant documents to the issuing bank on approval basis subject to URC 522.
Best regards,
N.H. Duc
Payment on Due date
Hi Tuh,
The documents were forwarded on approval basis, subsequently the issuing bank had sent the discrepancy message also, Later they had sent the 799 as stated above,
Kindly advise
Thanks,
Shakir
The documents were forwarded on approval basis, subsequently the issuing bank had sent the discrepancy message also, Later they had sent the 799 as stated above,
Kindly advise
Thanks,
Shakir
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ThuHoangAnh_
- Posts: 58
- Joined: Fri Apr 05, 2019 5:28 pm
Payment on Due date
Hi Shakir,
If a presenter makes a presentation on approval basis without indicating if it is subject to URC 522, such a presentation is understood still subject to UCP 600.
Back to your query, ICC ever answered a similar query (see TA655rev) where a nominated bank sends a message to the advising bank reading: "Please be informed that the documents are accepted by us for maturity date June 05, 2008 (June 04, 2008 is a holiday in our country). At maturity date we will revert to the matter of payment of proceeds."
Analyzing that the fact that the nominated bank states the documents are "accepted by us" merely implies that they declare that the documents represent a complying presentation, ICC comes to conclusion that the wording used in the message of the nominated bank does not reflect that it has incurred its deferred payment undertaking.
Your case is slightly different from the above case. It is the issuing bank (not the nominated bank) that states such wording in their message after having sent its notice of refusal. In my own opinion, though the message does not contain the issuing bank’s payment undertaking, the issuing bank is still bound by such wording, i.e. to pay the bill when due.
Awaiting more comments from other experts.
B.regards,
N.H. Duc
[edited 10/22/2008 8:50:39 AM]
If a presenter makes a presentation on approval basis without indicating if it is subject to URC 522, such a presentation is understood still subject to UCP 600.
Back to your query, ICC ever answered a similar query (see TA655rev) where a nominated bank sends a message to the advising bank reading: "Please be informed that the documents are accepted by us for maturity date June 05, 2008 (June 04, 2008 is a holiday in our country). At maturity date we will revert to the matter of payment of proceeds."
Analyzing that the fact that the nominated bank states the documents are "accepted by us" merely implies that they declare that the documents represent a complying presentation, ICC comes to conclusion that the wording used in the message of the nominated bank does not reflect that it has incurred its deferred payment undertaking.
Your case is slightly different from the above case. It is the issuing bank (not the nominated bank) that states such wording in their message after having sent its notice of refusal. In my own opinion, though the message does not contain the issuing bank’s payment undertaking, the issuing bank is still bound by such wording, i.e. to pay the bill when due.
Awaiting more comments from other experts.
B.regards,
N.H. Duc
[edited 10/22/2008 8:50:39 AM]
Payment on Due date
There is an opinion where the message was sent by the issuing bank. See opinion R309 (Opinions 98-99)
Daniel
Daniel