Dear all, would you pls share your understanding with the following question?
if the reimbursing bank receives MT742 from the claiming bank on March 1,2009(sunday), and issuing bank requires a MT754 one banking day prior to the claim, when is the latest date for the reimbursing bank to honour the claim?
inquiry of a reimbursement claim
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Processing a reimbursement claim
MT754 is the pre notification from the nominated bank to the issuing bank, When the reimbursing bank received the reimbursement claim, it has 3 banking day to process the claim as per URR 725 article 11 (a) i.
If the reimbursing bank received the MT742 on Sunday (presume a non banking day), then the MT742 will deem to be received on Mar 2 plus 3 banking days, the reimbursing bank has to pay on Mar 5 Thursday.
If the reimbursing bank received the MT742 on Sunday (presume a non banking day), then the MT742 will deem to be received on Mar 2 plus 3 banking days, the reimbursing bank has to pay on Mar 5 Thursday.
- berry
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does 754 matter
does the 754 affects the reimbursing bank's activity anyway. a 754 is send by the nominated bank to the issuing bank. the reimbursing bank is nothing to do with it. however in some cases, the issuing bank also instruct the reimbursing bank to give a pre-debit notification. in that case URR 725 article 11a applies which says
a. i. A reimbursing bank shall have a maximum of three banking days following the day of receipt of the reimbursement claim to process the claim. ....
If a pre-debit notification is required by the issuing bank, this pre-debit notification period shall be in addition to the processing period mentioned above.
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good answer
your answer is just to the point, thank you very much, berry