L/C calls for:
. Full set 3/3 original clean on board bill of lading made out to the order of ABC Bank (nominated bank) (without states 'and endorsed to the issuing bank').
Issuing bank received from nominated bank B/L issued 'to the order of ABC Bank').
Can the Issuing bank advice nominated bank about the following discrepancy: + B/L not endorsed to the issuing bank. ?.
Thanks for your help.
Consignee on B/L
If, in the box headed "Consignee" it just shows "ABC Bank" then it is not negotiable - it cannot be endorsed to another parties order, However, as stated here if in the consignee box is says "to the order of ABC Bank" then it IS issued in negotiable form and the issuing bank can endorse to the order of the Applicant. From the wording of this initial enquiry the B/L presented is NOT discrepant.
B/L endorsement
I guess that ABC bank is not identical with issuing bank?
Anyhow "in dubio contra stipulatorem" as lawyers say : "in case of doubt against the stipulating (writing/defining) party!"
The B/L would be alright and issuing bank had to further endorse the B/L by signing "we guarantee for the missing endorsement of ABC Bank" and then endorsing the B/(L as usually.
Naturally, they can not claim their negligence (when setting up the credit) for a discrepancy.
-Each long journey starts with a small step-
Best regards
Frammi
B/L not endorsed
Dear Nick
Yes, it can and should. Without that endorsement, the ownership cannot pass to the issuing bank. Thus, possession of goods (eventually) by the applicant (the actual buyer) will not be possible.
But L/C does not state 'and endorsed to the issuing bank'
I agree with you about the impossibility of applicant to take goods but L/C does not state '...and endorsed to the issuing bank'. Can issuing bank in any case arise discrepancy?.
B/L not endorsed
Ooops, I am sorry. I did not read the question correctly. I took it that the LC required the B/L to show '...and endorsed to the issuing bank'. My response was based on that. If the LC did not require that endorsement, of course the B/L is perfectly in order as far as the LC is concerned. It is not a discrepancy. Sorry folks!
B/L not endorsed in favour of the issuing bank
Technically, it's NOT a discrepancy, since the B/L is as per the LC terms (assuming that the B/L is consigned to the order of XXX Bank). However practically it doesn't make sense NOT to endorse the B/L in favour of the issuing bank. It is always advisable on the part of the beneficiary to check the LC thoroughly, in this case the LC is not worded properly. Invariably, in all cases where the LC calls for a B/L consigned to the order of the nominated bank, the words and blank endorsed or endorsed to the order of the issuing bank follow.
Eg
47A:
....
3/3 Ocean bills of lading consigned to the order of XXX bank and blank endorsed/endorsed to the order of the issuing bank......
Regards
Jinugu Ravi Kumar
CDCS