2 Branches of a Bank in Same Country

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sameertf2010
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Joined: 04/23/2010
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Dear Experts,

I am new to this forum and would be obliged if you can pls. share your expert comments on the below

1. We received an Inland LC issued by the Branch of a large Bank situated in City A and Advised and Restricted for Negotiation at their Branch located in City B of the SAME COUNTRY.

My Questions are

a.) Whether in terms of UCP 600, Branches of the same Bank in different cities of the same country would be treated as different bank or as the Same Bank
b) After we presented the docs to their Bank in City B for Negotiation, they scrutinized the docs and on finding the docs in order, they presented the docs to the Issuing Branch. Issuing Branch came bank with 1 valid discrepancy, missed by the Negotiating Branch. Can branches of the same Bank in different cities be treated
as 2 Banks for scrutinizing the docs and raising discrepancies.

Many thanks for your comments, Sameer 

 

sekhartreddy
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Joined: 08/26/2010
two branches of same bank at different locations of same country

art 3 of ucp 600 is very clear. It states branches of the same bank in two different countries are treated as two different banks. In otherwords 2 branches of the  same bank in 2 different locations of the same country can not be treated as 2 different banks.

Hence in my opinion handling of documents by another branch of same bank in diiferent city of the same country can not constitute negotiation. You may also refer definition of neg bank under art 2 in this matter

sekhar

sameertf2010
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Joined: 04/23/2010
5 banking days will be available to only one Branch

Dear Sekhar, Thanks for your reply and I fully agree with you. Assuming that my Branch took 5 banking days after submission to check the docs and sent to Issuing Branch, would it mean that the Issuing Branch now cannot raise any discrepancy, because it will after 5 banking days and hence invalid under UCP 600. Pls. advise. Thanks

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