as per urr 725
suppose
mt 740 was sent from issuing bank to reimbursing bank on 01 january
mt 754 was sent from nominated bank to issuing bank 10 april indicating predetermined value date as 15 april and also
mt 742 was sent from nominated bank to reimbursing bank on 10 april indicating predetermined value date 15 april
and there is no any pre-notification day
does reimbursing bank must pay to nominated bank on 15 april without delay
and if pays later who is responsible for delay
predetermined date on URR
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Predetermined date on URR
Refer to your question below, presume there is no pre-debit notification require from reimbursing bank to issuing bank.
As per URR725 article 11 provide that the reimbursing bank must pay on the predetermine date (i.e. 15 Apr) or send a notice of non-reimbursement (in the case if the funding from issuing bank is not effected or some other reason).
Any delay of payment will depend of the reason of the delay, however, the concept of independent of the credit and reimbursement authority must be observe (URR725 - article 3) i.e. in the case whereby the error is due to reimbursing bank, the claiming bank will have to claim delay interest from the issuing bank and issuing bank will separately take up the case with reimbursing bank for such delay interest.
As per URR725 article 11 provide that the reimbursing bank must pay on the predetermine date (i.e. 15 Apr) or send a notice of non-reimbursement (in the case if the funding from issuing bank is not effected or some other reason).
Any delay of payment will depend of the reason of the delay, however, the concept of independent of the credit and reimbursement authority must be observe (URR725 - article 3) i.e. in the case whereby the error is due to reimbursing bank, the claiming bank will have to claim delay interest from the issuing bank and issuing bank will separately take up the case with reimbursing bank for such delay interest.
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CLAIM REIMBURSEMENT
Dear edilee,
As per URR725 Article 17,
In case of a reimbursement undertaking, reimbursing bank is responsible for non-payment on 15APR.
Otherwise,the responsibility are between the claiming bank and the issuing bank.
As per URR725 Article 17,
In case of a reimbursement undertaking, reimbursing bank is responsible for non-payment on 15APR.
Otherwise,the responsibility are between the claiming bank and the issuing bank.