Force majeure and dishonour

GSham · Post by **GSham** » Thu Dec 27, 2012 12:00 am

After the issuing bank has received the documents, a force majeure event prevents the issuing bank from checking the documents in a timely manner. As a result the issuing bank fails to send a notice of dishonour in accordance with article 16. In such case is the issuing bank precluded from dishonour in accordance with article 16(f)?

HOANGTHIANHTHU_invalid · Post by **HOANGTHIANHTHU_invalid** » Fri Dec 28, 2012 12:00 am

Hi,

The issuing bank has a maximum of five banking days following the day of presentation to determine if the presentation is complying and give a notice of refusal if the presentation is not complying.

I would treat force majeure days as non-banking days. Upon resumption of its business, if the issuing bank determines that the presentation is not complying and decides to refuse, it can give a notice of refusal to the presenter provided such a notice is given within five banking day rule with force majeure days excluded from calculation.

Best regards,
N.H.Duc

JimBarnes · Post by **JimBarnes** » Sat Jan 05, 2013 12:00 am

I think this question deserves more consideration/discussion about isbp, etc., as the UCP600 force majeure excuse may not extend to these circumstances. Regards, Jim Barnes