ICC Digital Library Forum

Dear all,
We would lịke to have yr opinion on the following issue:
(1) is the draft a document like other documents required under a credit?
(2) are discrepancies with respect to drafts a reason for refusal?
(3) Is it discrepant if Draft not endorsed (as per article49, ISBP )
Thank all

To give you an idea, see:
In insight April 2010: TA703 rev
Regards

Daniel

The position is very confused. On the one hand one has comprehensive banking practice set out in para's 43 - 51 of isbp which logically has to be adhered to and then one has opinions, Docdex decisions and legal cases (e.g. CIC v CMB) that suggest quite the opposite. To me it is vital that the next version of isbp clearly deals with the 'status' of drafts so that the 'conflicting signals' regarding drafts are resolved definitively.

Jemery is correct. In general, a draft is considered a demand for payment rather than a document. However it does depend. There are some valid discrepancies i.e. incorrect tenor or amount, etc. that allow refusal under UCP but courts have had differing opinions especially when drafts on drawn on the issuer.