Letter of Credit Forum

Hi

I am a newbie to Trade Finance, working now in a bank - appreciate the help all the gurus out there can offer!

Say,

Scenerio: if the advising bank has a good relationship with the exporter / seller, and accepts the discrepant LC and route it to the issuing bank stating LC in compliance (without getting any waiver / indemnity from seller)

What happens next in a worst case scenerio? What is the risk to this advising bank? Will the issuing bank not pay?

Thanks in advance