ICC Digital Library Forum

Hi

Beneficiary presented docs to us despite LC is restricted to another bank. We, acting as a presenting bank, sent the docs to issuing bank which was considered as clean and received the acceptance advice from issuing bank.

Can we understand that this acceptance advice override the restriction terms of original LC like amendments and bind issuing bank themselves to pay at maturity to the presenting bank ?
Obtaining issuing bank's A/A, does the presenting bank have the rights to claim from the issuing bank if default may be happened ?

Regards,
Atsuko

No, it would not override the availability of the LC, i.e., the presenter does not become nominated bank under the LC upon receipt of the acceptance. In such a case if the presenter wants to finance the beneficiary, they should seek explicit authority from the issuing bank.

Hi,

According to sub-article 6 (a), the presenter (i.e., the beneficiary or the presenting bank making presentation on behalf of the beneficiary) may present the documents directly to the issuing bank bypassing the nominated bank.

The issuing bank which accepted the documents and advised the same to the presenting bank must pay at maturity in accordance with the presenting bank’s instructions.

As the presenting bank makes presentation on behalf of the beneficiary, it is entitled to claim from the issuing bank on behalf of the beneficiary in case the issuing bank fails to pay at maturity.

Kind regards,
N.H. Duc