Can A Issuing Bank Honor A Non-Complying Presentation?

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cdcsmentor
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Can A Issuing Bank Honor A Non-Complying Presentation?

Post by cdcsmentor » Mon Nov 17, 2014 11:10 pm

We know from UCP 600 Article 2 (definition) that an issuing bank must honor a complying presentation. Can an issuing bank honor a non-complying documents? Then what is the risk borne by the issuing bank?

yousufsyed22
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Can A Issuing Bank Honor A Non-Complying Presentation?

Post by yousufsyed22 » Thu Nov 20, 2014 11:07 am

Bank must not Honor for Non-complying Presentation, Applicant has right to claim on Issuing bank if he face any problem with the discrepant documents.

tituisrt
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Issuing Bank Can Honor A Non-Complying Presentation

Post by tituisrt » Thu Nov 20, 2014 4:04 pm

Dear,
YES
Issuing Bank Can Honor A Non-Complying Presentation by its sole judgement.

If the discrepancies are minor (will not hamper the applicant's interests) an issuing bank may honor a non-complying presentation without informing applicant.
But if the discrepancies are major (will hamper the applicant's interests) then issuing bank need the approval of applicant's.

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