Straight Bill of Lading
Posted: Fri Nov 22, 2002 12:00 am
Dimitri,
A BANK’S RISKS AS AN ENDORSEE IN A NEGOTIABLE TRANSPORT DOCUMENT
Payment of freight is not the most horrible part. There are other more horrible things for a bank that becomes an endorsee of an endorsable transport document, such as a marine BL. Those more horrible things are too technical and complicated to explain here. We have to leave them to a transport workshop. Otherwise the more we explain, due to brevity and not building a solid knowledge platform on transport practices (that needs one full day) before we deal with these technical issues, then the more we try to explain, the more queries we would receive. And the more confusions we would create.
A BANK’S RISKS AS AN ENDORSEE IN A NON-NEGOTIABLE TRANSPORT DOCUMENT
However, for a non-endorsable transport document, such as the AWB, SWB or SBL, the bank as an “endorsee” may not have such risks, as the bank may defend that such “endorsement “ is nevertheless invalid, as the endorser has no capacity to act in the first place. But if the bank exercises its right, such as using the transport document to claim the goods to mitigate its losses, such as the parties all disappear, then the bank may become responsible for those horrible things, although the endorsement is otherwise invalid.
THINK TWICE BEFORE A BANK CLAIMS FOR THE GOODS
So when a bank tries to claim for the goods, be very careful to seek legal advice first and not to assume anything.
The more you know, the more you don’t know!
DISCLAIMERS: Our opinions are made for discussion only and parties should consult lawyers and experts for their advices before they rely or act upon our opinions. We do not assume any responsibilities or liabilities whatsoever.
www.tolee.com
A BANK’S RISKS AS AN ENDORSEE IN A NEGOTIABLE TRANSPORT DOCUMENT
Payment of freight is not the most horrible part. There are other more horrible things for a bank that becomes an endorsee of an endorsable transport document, such as a marine BL. Those more horrible things are too technical and complicated to explain here. We have to leave them to a transport workshop. Otherwise the more we explain, due to brevity and not building a solid knowledge platform on transport practices (that needs one full day) before we deal with these technical issues, then the more we try to explain, the more queries we would receive. And the more confusions we would create.
A BANK’S RISKS AS AN ENDORSEE IN A NON-NEGOTIABLE TRANSPORT DOCUMENT
However, for a non-endorsable transport document, such as the AWB, SWB or SBL, the bank as an “endorsee” may not have such risks, as the bank may defend that such “endorsement “ is nevertheless invalid, as the endorser has no capacity to act in the first place. But if the bank exercises its right, such as using the transport document to claim the goods to mitigate its losses, such as the parties all disappear, then the bank may become responsible for those horrible things, although the endorsement is otherwise invalid.
THINK TWICE BEFORE A BANK CLAIMS FOR THE GOODS
So when a bank tries to claim for the goods, be very careful to seek legal advice first and not to assume anything.
The more you know, the more you don’t know!
DISCLAIMERS: Our opinions are made for discussion only and parties should consult lawyers and experts for their advices before they rely or act upon our opinions. We do not assume any responsibilities or liabilities whatsoever.
www.tolee.com