Dear All,

Appreciate your valuable feedback on the below scenario....

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Bank 'A' receives an LC to be advised to the beneficiary, wherein Bank 'A' has also been shown as the reimbursing bank in the field 53: of the LC. The LC is freely negotiable and the Issuing Bank has not sent out any separate reimbursement authorization.

Question # 1 : In case documents are received at the counters of Bank 'A', is it implied that they are authorized to debit the Issuing Bank's account in settlement of proceeds, against compliant documents?

Question # 2 : In case Bank 'A' receives a reimbursement claim from another bank, can they honor the claim subject to availability of funds, given the fact that they are aware that they have been nominated as the reimbursing bank in the LC?

Question # 3 : Does the situation change in any way, if the LC does not explicitly state that reimbursement under the LC is subject to URR? 

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Thanks!!!