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5 Banking Days for Examination

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Sat, 02/16/2008 - 22:35
CDCS06
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Hi,

As per UCP 600, article 14 (b), banks have 5 banking days following the receipt of documents to determine whether the presentation is complying and if they accept or reject the documents. Do the rule applies to discrepant documents presented to the issuing/ confirming bank as well (as such in the case of docments forwarded under reserve or against indemnity)? In many cases, if documents are presented under reserve or against indemnity, banks buy more than 5 days to send aceptances to nominated bank arguing that since documents were discrepant, they were waiting for applicant's approval. Also, what will be the treatement in case nominated bank forwards documents to issuing/ confirming bank, without exmaning them (due to they being restricted to some other bank).

Regards

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Sun, 02/17/2008 - 05:54
#1
shahriar
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Re of 5 wd

Issuing bank / COnfirming bank must issue a refusal advice even though the nominated bank / presenting bank has found discrepancies and mentioned the same on cover letter. the rule equally applies even when the cover letter mentions "its one collection basis"; unless the reference of the URC 522 is expressly mentioned. hope that answer the question

Shahriar

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Sun, 02/17/2008 - 22:50
#2
Azimpoor
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Joined: 01/02/2008
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hi shahriar

may I ask you explain more about it, it is a good question but your answer isn't clear to me.

Many thanks,

Zahra

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