can applicant refuse to reimburse

[nesarul]

Dear,
Credit conditions: bill of lading made out to the order of issuing bank. available with issuing bank by payment
document presented direct to the issuing bank within stipulated time period.
Bill of lading made out to the order of Applicant of the credit and presented full set of Bill of lading.
Query:
If issuing bank waive this discrepancy, can the applicant refuse to reimburse the IB.
regards
nesar

[Hussam]

Dear nesarul
the mechanism of handling discrepant doc is that applicant will accept discrepant doc aginst payment of its value, he can not take up doc and refuse to pay

Regards

[iLC]

dear hussam,

nesarul actually emphasized on issuing bank's waiver. so its possible that applicant may refuse to pay.

If issuing bank waive this discrepancy, can the applicant refuse to reimburse the IB.

but... i have my own understanding here. the applicant does not draft the credit. it is the issuing bank which draft it as per requirement of the applicant. the issuing bank also design some clauses to protect its interest. in this case bill of lading is discrepant. if im not wrong, most of the LC application has the option for "types of transport document" and the applicant only select "bill of lading". so the stated discrepancy has nothing to do with the applicant. in either case, it meets the requirement of the applicant. i see no reason not to be reimbursed. but i must say, it depends.

[ajoy]

It definetly depends on the wording of the 'LC application form' (or even the master agreement for the facility) that the applicant of LC signed /submitted.

Cheers