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Issuing Bank Undertaking

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Sun, 10/25/2015 - 20:33
c1234c
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Joined: 08/23/2014
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Lets say I am a confirming bank, I received documents from "D" bank and forwarded to "A" bank(issung bank).

"A" bank accepted to pay on due date and I have sent a swift to inform "D" bank that "A" bank accepted to pay on due date, we undertake to remit after receive payment from "A" bank.

Now "D" bank come back to insist me as a confirming bank, to undertake to pay on due date instead of remit after fund receive from issuing bank.

How should I revert?

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Sun, 10/25/2015 - 23:31
#1
pan
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Joined: 09/13/2007
Confirming

Hi Friend,

 

the presenting bank is correct, by adding confirmation it is your risk to effect payment under  complying documents.

This undertaking should be made, normally, without waiting for the issuing bank's acceptance.

Naturally, you may calculate a period of time, to avoid disbursement before receiving the cover by the issuing bank, but all

details should be stated in the advice to the beneficiary.

Other comments appreciated

Ciao

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