Claiming on Issuing Bank for delay payment interest

akomolpa · Post by **akomolpa** » Fri Oct 02, 2009 12:05 pm

Dear all,

If Issuing Bank had received the documents presented complied with LC terms, but they pay the nominated bank after 5 banking days.
Are the Nominated Bank able to claim the delay payment interest from the Issuing Bank?

Rgds,
akomolpa

shahriar · Post by **shahriar** » Fri Oct 02, 2009 7:50 pm

there is not hard rule when the issuing bank has to pay. first of all, the 5 days examination period does not allow you to hold payment for five day. for example if presentation has only an invoice, there is no reason that you will take 5 days to examine it. once you have determined a presentation as complying, the UCP position is "when..." now there is no official definition of when. in my opinion, 3 days maximum may be taken for reimbursement.

under the above scenario, whether the nominated bank can claim interest or not, depends on the case. by the way, why is the nominated bank only claim interest? beneficiary can also claim interest.

akomolpa · Post by **akomolpa** » Mon Oct 05, 2009 10:19 am

Thank you very much for your value comment.

Rgds,
akomolpa