deferred payment obligation

[edilee]

what happens on a deferred payment l/c
if the aplicant applies to issuing bank with a court decision mentioning about corruption and not to pay to the beneficiary at maturity under. l/c is unconfirmed.
does issuing bank should pay in spite of national court decision about not to pay

[picant]

Hi Pal,

Court decision to stop payment , from legal point of view, is more important than UCP, but the issuing bank, in order to keep its own good reputation, will notice the beneficiary's bank that is acting as per Court order. However the issuing bank could inform the court that his order is cousing some problems as it is stopping a payment mean.
Naturally, if the ground of such action is true or false, will be a court decision to state it.
We have two types of behaviour:
1-we debit applicant's account and put the amount in a special account, awating court final decision.

2-we will keep the l/c stll living, without debiting the applicants account and without paying the beneficiary's bank

Both actions cause problems, courts requests, letters of claims, and if there is a true fraud, the matter will be settled with a discount .......

Other comments appreciated

Ciao

[edilee]

thank you picant
is the court decisions belong to applicant's country more important than UCP rules really
could you give some details