NEGO BANK'S DUTY TO REFUND IS ALIVE?

SOOEYOUNKIM · Post by **SOOEYOUNKIM** » Mon May 07, 2012 1:00 am

Dear sir,
I urge you to give me an advice for solution of followng problems..

1) L/C indicate 53A : CCC bank
2) L/C indicate also : nego bank to claim reim on the reim bank value 7 working days from the nego date.

3) however, BBB(nego bank) claimed reim on the reim bank value spot (no value date is written in the MT742)

4) So, BBB received fund from the reim bank shortely after claming reim.

5) Issuing bank (AAA) insists that the nego bank (BBB) Should refund the fund and re-claim the proceeds applying value 7 working days as insturcted in the credit.

--

Then,
1) Do we (BBB) have to refund proceeds?
2) is it natural that we regard the
fund from the reim bank(CCC) as being made on a without recourse basis?

Looking forward to hearing from you, specialists.
[edited 5/7/2012 6:28:41 AM]
[edited 5/7/2012 6:29:08 AM]