URR 725: Issuing bank in Liquidation

[nayanrshah]

If there is a Reimbursing bank in LC,Reimbusing bank would only pay if Issuing bank's Nostro has sufficient funds.

After sending of MT-752 by issuing bank,issuing bank goes for liquidation and in Nostro with reimbusing bank there is a enough funds to pay claiming banks claim,is Reimb. bank would honour the

[berry]

i think its a legal question. if the issuing bank is in liquidation, then i think all the account will be automatically frozen. other comments appreciated.

[nayanrshah]

Is Reimb. Bank sends PDN for each transaction to Issuing bank? I wants to know practice of banks.

In my bank I have seen this practice, so when there is a holiday in my country our processing center at issuing bank instruct Reimb. bank to pay on next banking day.

Regards
Nayan

[Jackie]

Dear all

i agree that the assets of the issuing bank would have been frozen and in any event, the reimbursing bank is not obligated to reimburse unless it has issued its own IRU.

Jackie