Negotiating Bank Stating Payment Is On With Recourse Basis
Posted: Tue Jul 16, 2013 2:39 pm
LC CONDITIONS:
ISSUING BANK: BNXXX, LONDON
ADVISING BANK: BNXXX, NEW DELHI, INDIA
AVAILABLE WITH BY: BNXXX, NEW DELHI, INDIA
Field 47b sub field 10: Through the tenor of the L/c is 180 days sight negotiating bank will pay up front at sight basis to beneficiary the value of documents provided that L/c conditions of fully complied with. Discounting interest is on account of applicant at libor+ x pbs point
Beneficiary presented documents at negotiating bank: BNXXX NEW DELHI, Negotiating bank confirm documents are clean and fully comply as per article 15.
Beneficiary requested kindly pay as per field no. 47b sub field 10: You had negotiating documents referring to article 12b & 7c. Negotiating bank BNXXX, NEW DELHI paid to beneficiary on next day.
Documents received by issuing bank BNXXX. LONDON ON 02 may 2013 and issuing bank confirmed to negotiating bank(BNXXX, NEW DELHI) on 08 may 13 stating documents are fully complied as per L/c terms and condition along with maturity date.
Question is: Negotiating bank stating this payment is on with recourse basis. Can we have reasons of recourse please? We hope this payment is now without recourse. Kindly advice what recourses can happen?
ISSUING BANK: BNXXX, LONDON
ADVISING BANK: BNXXX, NEW DELHI, INDIA
AVAILABLE WITH BY: BNXXX, NEW DELHI, INDIA
Field 47b sub field 10: Through the tenor of the L/c is 180 days sight negotiating bank will pay up front at sight basis to beneficiary the value of documents provided that L/c conditions of fully complied with. Discounting interest is on account of applicant at libor+ x pbs point
Beneficiary presented documents at negotiating bank: BNXXX NEW DELHI, Negotiating bank confirm documents are clean and fully comply as per article 15.
Beneficiary requested kindly pay as per field no. 47b sub field 10: You had negotiating documents referring to article 12b & 7c. Negotiating bank BNXXX, NEW DELHI paid to beneficiary on next day.
Documents received by issuing bank BNXXX. LONDON ON 02 may 2013 and issuing bank confirmed to negotiating bank(BNXXX, NEW DELHI) on 08 may 13 stating documents are fully complied as per L/c terms and condition along with maturity date.
Question is: Negotiating bank stating this payment is on with recourse basis. Can we have reasons of recourse please? We hope this payment is now without recourse. Kindly advice what recourses can happen?