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how to close file by a remitting bank for long unsettled collection bills

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Thu, 03/24/2016 - 21:48
guoking
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Joined: 10/01/2008
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Dear expert bankers 

Thought this forum is focusing on discussing of documentary credits ,allow me to have the question concerning documents sent for collection by a remitting bank according to ICC 522:

If a collection bill,either DP or DA remains unpaid by drawer for a long time,how can a remitting bank close the file and discharge its handling involvement in the transaction ?

The reason why the remitting would like to get rid of the collection transaction could be:

The remitting bank is going to wind up and terminate its banking license ,so the bank has to clear all outstanding collection bills ,or

The remitting bank would like to close account with its customers and stop business with them but there are still Collsection docs remain unsettled.

Thank you!

 

 

 

 

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Fri, 04/15/2016 - 10:11
#1
guoking
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Joined: 10/01/2008
unremitting bank

Nobody can answer how the remitting bank can close the file if drawer does not authorize remitting bank to return unpaid docs DP, or unpaid draft DA being accepted ?

 

 

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Fri, 04/15/2016 - 10:11
#2
guoking
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Joined: 10/01/2008
unremitting bank

Nobody can answer how the remitting bank can close the file if drawer does not authorize remitting bank to return unpaid docs DP, or unpaid draft DA being accepted ?

 

 

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Fri, 03/25/2016 - 06:55
#3
giampaolo m and b
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Joined: 03/18/2016
According to URC 522, article

According to URC 522, article 26

“ADVICE OF NON-PAYMENT AND/OR NON-ACCEPTANCE.

The presenting bank should Endeavour to ascertain the reasons for nonpayment and/or non-acceptance and advise accordingly, without delay, the bank from which it received the collection instruction.

The presenting bank must send without delay advice of non-payment and/or advice of non-acceptance to the bank from which it received the collection instruction.

On receipt of such advice the remitting bank must give appropriate instructions as to the further handling of the documents. If such instructions are not received by the presenting bank within 60 days after its advice of non-payment and/or non-acceptance, the documents may be returned to the bank from which the collection instruction was received without any further responsibility on the part of the presenting bank.”

Ciao

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