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WHO IS LIABLE UNDER UCP600

Tue, 07/08/2008 - 23:36 — zapcoolsail

Hi to everyone,

Article 37(c) says "An issuing bank or advising bank assumes no liability or responsibility should the instructions it transmits to another bank not be carried out,even if it has taken the initiative in the choice of another bank."

Article 7 which mentions about the issuing bank undertaking to honour as of the time it issues the credit.2)sight payment/deffered payment/acceptance with a nominated bank and that nominated bank does not pay...

My questions are

1)Isn't the above two statements contradictory.The first absolves the issuing bank whereas the second makes the issuing bank liable.Suppose what if the confirming bank refuses to honour the complying presentation.....

Can anyone please clarify?

 

 

 

 

 

 

 

 

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Wed, 07/09/2008 - 01:40 — VV

irrelevant areas

Hi !

Art 37(b) (instead of (c)) is extension of 37(a) which is  concerning the applicant's instructions can't be carried out.  It is applicant's side.

Art 7 is concerning the undertaking of issuing bank when the complicant documents are presented.  It is beneficiary or nominated bank's side.

They are separately working in totally different areas, therefore not contradiction.

Hope it may help!

V.V. 

 

 

Wed, 07/09/2008 - 22:18 — zapcoolsail

Not clear

Dear V.V thanx for the reply....But it is till not clear....say if the issuing bank a authorises bank b to confirm a credit and bank c to advise a credit....but both banks fail in their duties...they keep silent ...who is liable.......

Article 7 says issuing bank shud pay.....its not clear......

 

 

Can u pls clarify?? 

 

Sun, 08/03/2008 - 01:39 — Frammi

Who is liable

Dear Zapcoolsail,

Those banks have to report to the issuing bank that they wil not l or can not follow the instructions/wish (as you like) of the issuing bank - see art. 8 d) and 9 e) of UCP 600.

In case they were dull ducks not giving a mention to the issuing bank and the beneficiary is of the same type not claiming non-receipt of L/C, how could a claim be made, if the beneficiary doesn't even know, there is a L/C around??

Maybe he has received a fax copy of applicants. The issuing bank wouldn't know he didn't receive the original! He could go to any bank and ask them to present his docs to the issuing bank for payment.

Hope that was helpful. 

   -Each long journey starts with a small step-

Best regards

Frammi