URR 725, Art 11d

[SladjanaSkakic]

We are a branch of a bank in other country. Under Letters of Credit issued through us, availabe with us by payment and with a reimbursing bank stated, we claim reimbursement stated our head office as “beneficiary bank” (field 58A in MT742), because we, as a branch, do not have any nostro accounts.

A number of reimbursing banks send us msgs like this:
PLEASE BE ADVISED THAT THE REIMBURSEMENT AUTHORIZATION IS RESTRICTED TO YOUR BANK BUT YOUR PAYMENT INSTRUCTION IS TO PAY ANOTHER BENEFICIARY BANK. .
IN ACCORDANCE WITH URR 725, ARTICLE 11D, WE ARE REQUIRED TO EFFECT REIMBURSEMENT UNDER A REIMBURSEMENT CLAIM ONLY TO THE CLAIMING BANK.
.
THEREFORE, PLEASE PROVIDE US WITH AMENDED PAYMENT INSTRUCTIONS TO REMIT FUNDS TO YOUR BANK ONLY.
.
IN THE MEANTIME, THE CLAIM IS BEING HELD UNPAID WITHOUT ANY RESPONSIBIILTY ON OUR PART PENDING YOUR REPLY.

Art 11d states:
Unless otherwise expressly agreed to by the reimbursing bank and the claiming bank, a reimbursing bank will effect reimbursement under a reimbursement claim only to the claiming bank

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Is reimbursing bank’s interpretation of Art 11d correct?

Stating another bank, i.e. our Head Office as Beneficiary Bank in our claim, we assume that we have expressly agreed that payment is to be effected in favour of that bank, and not in our favour, and that it is in accordance with Art 11d.

Some suggestions to avoid such additionals explanations and delay in payment?

Thanks in advance

[edited 6/11/2009 9:28:01 AM]
[edited 6/11/2009 9:40:14 AM]

[JudithAutié]

You could request reimbursing bank to pay "your account" held with your Head office though your HO's correspondant.

Good Luck
Judith