hello
what happens if advising bank have a fault on advising the L/C or any amendment: such as missing or being late. And what about nominated or confirmed bank for the same fault. is there any rule on this.
thanks
advising faults
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edilee
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shahriar
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equally treated
dear metin,
the job of advising a credit to the beneficiary is somewhat independent of their nomination status. so it does not really matter whether the advising bank is also the nominated bank or not.
as per UCP 600, the job of advising bank is to accurately reflect the terms and condition of the credit. failure to do so... its a hard question to answer.
in my opinion, the issuing bank will have to honor the presentation. however the issuing bank can of course sue the advising bank for not doing its job properly.
the job of advising a credit to the beneficiary is somewhat independent of their nomination status. so it does not really matter whether the advising bank is also the nominated bank or not.
as per UCP 600, the job of advising bank is to accurately reflect the terms and condition of the credit. failure to do so... its a hard question to answer.
in my opinion, the issuing bank will have to honor the presentation. however the issuing bank can of course sue the advising bank for not doing its job properly.