A letter of credit calls for an air waybill evidencing goods consigned to the applicant.
When the issuing bank receives the documents from a nominated bank,
they note a discrepancy therein and provide a refusal notice according to UCP 600 article 16.
However, the applicant takes control over the goods and does not provide a waiver of the discrepancy.
The beneficiary complains that as the applicant has taken control over the goods, the issuing bank must pay un the letter of credit.
--> correct answer : The issuing bank is not in a position to honour.
Why?? I don’t follow.
What Is The Position Of The Issuing Bank?
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makn321
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picant
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OLD STORY
Hi Pal,
the bank is acting correctly in refusing discrepant documents. The fact that applicant got the goods has no importance, beneficiary should require an amendment to avoid this risk.
Naturally, from UCP point of view, a Court will decide differently!!!
Other comments appreciated
Ciao
the bank is acting correctly in refusing discrepant documents. The fact that applicant got the goods has no importance, beneficiary should require an amendment to avoid this risk.
Naturally, from UCP point of view, a Court will decide differently!!!
Other comments appreciated
Ciao