processing a reimbursement claim

yangkenn · Post by **yangkenn** » Thu Apr 08, 2010 9:21 pm

Hello everyone, i need your help for the following question:

LC is available with Bank A by negotiation and Bank B claims from the reimbursement from reimbursing bank Bank C, Bank C may effect reimbursement to Bank B based on its own discretion.Is it correct?

bdesh · Post by **bdesh** » Sat Apr 10, 2010 5:55 pm

Hi,
Bank B is not authorised to claim reimbursement form Bank C.
Bank B shall have to refund with upto date intersest.

jmitra · Post by **jmitra** » Sat Apr 10, 2010 6:06 pm

it depends on the reimbursement authorization. generally when the nomination is restricted, reimbursement authorization is also restricted. if the reimbursement authorization is restricted, bank C must not honor claim from any other bank.

danohng · Post by **danohng** » Sun Apr 11, 2010 8:14 am

Refer to URR 725 article 2 e : a claiming bank include bank act on behalf of the nominated bank who negotiate and honour. If bank B is acting on behalf of bank A, this is allow under URR.