Drawee Field

mandyvong · Post by **mandyvong** » Fri Jul 27, 2001 1:00 am

Credit in SWIFT format gave the following:-

Field 42A DRAWEE:
BOFCU33SFO
UNION BK OF CALIFORNIA
SAN FRANCISCO, CAL. U.S.A.
CIFNR 31666023 II UID

Is it required for the beneficiary to submit drafts incorporating the above full details e.g BOFCU33FO & CIFNR 31666023 II UID?

I would also like to enquire as to how a credit in SWIFT format indicate the reimbursement is subject to URR525 i.e. if the credit is silent, does it mean it is not s.t. to URR525?

PGauntlett · Post by **PGauntlett** » Fri Jul 27, 2001 1:00 am

1) name of drawee does not need to include swift/cif no's. A swift code by itself is not a legal entity
2) a credit has to specifically incorporate URR 525. If silent it is not subject to those rules

T.O.Lee · Post by **T.O.Lee** » Sat Jul 28, 2001 1:00 am

LEGAL ENTITY IN DRAFTS

In one Hong Kong DC dispute case in 2000, the DC required drafts "drawn on us" (which the Issuing Bank X considered the name of the Branch Y in China should appear as the drawee in the drafts or else deemed to be a discrepancy). The judge adjudicated that drafts drawn on Bank X as the drawee is good enough by law and it is not necessary to add the name of Branch Y, because all the branches of Bank X in China belong to the same legal entity.

We were retained as the expert witness by the Beneficiary who won the case. Our clients did not wish us to disclose the name of the Bank in public.

Now the enquirer has a precedent case from Hong Kong to support him on top of the opinions from Mr. PGauntlett.

We are from http://www.tolee.com

[edited 7/28/01 4:49:10 AM]

AbdulkaderBazara · Post by **AbdulkaderBazara** » Sat Jul 28, 2001 1:00 am

According to Novemeber 2000 Standard Release (SWIFTSTANDARDS- Category 7), if a bank uses MT 740 to authorize the reimbursing bank to honour claims under the LC, the reimbursement authorization is subject to URR 525, unless otherwise specified (page 171).