UCP 600 Overview of Article 15 UCP 600 Article 15 Complying Presentation

Ucp 600 overview of article 15 ucp 600 article 15

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UCP 600 – Overview of Article 15UCP 600 Article 15Complying PresentationOutlines the principle that Honour or Negotiation follows the determination of a complying presentation i.e.,Article 15 (b):When a confirming bank determines that a presentation is complying, it must honour or negotiate and forward the documents to the issuing bank.
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43UCP 600 – Overview of Article 16UCP 600 Article 16Discrepant Documents, Waiver and NoticeApplicable banks definedRemoval of ‘on their face’“…. may refuse to Honour or Negotiate”. UCP 500 Article 14aWhen the Issuing Bank authorises another bank to pay, incur a deferred payment undertaking, accept Draft(s), or negotiate against documents which appear on their face to be in compliance with the terms and conditions of the Credit, the Issuing Bank and the Confirming Bank, if any, are bound: i.to reimburse the Nominated Bank which has paid, incurred a deferred payment undertaking, accepted Draft(s), or negotiated,ii.to take up the documents.bUpon receipt of the documents the Issuing Bank and/or Confirming Bank, if any, or a Nominated Bank acting on their behalf, must determine on the basis of the documents alone whether or not they appear on their face to be in compliance with the terms and conditions of the Credit. If the documents appear on their face not to be in compliance with the terms and conditions of the Credit, such banks may refuse to take up the documents.
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44UCP 600 – Overview of Article 16UCP 600 Article 16Discrepant Documents, Waiver and NoticeApplicable banks definedMaximum of 5 Banking Days following day of presentation Notice must state (1) bank refuses, (2) each discrepancy and (3) status of the handling of documents – see slide 44UCP 500 Article 14cIf the Issuing Bank determines that the documents appear on their face not to be in compliance with the terms and conditions of the Credit, it may in its sole judgment approach the Applicant for a waiver of the discrepancy(ies). This does not, however, extend the period mentioned in sub-Article 13 (b).d.i.If the Issuing Bank and/or Confirming Bank, if any, or a Nominated Bank acting on their behalf, decides to refuse the documents, it must give notice to that effect by telecommunication or, if that is not possible, by other expeditious means, without delay but no later than the close of the seventh banking day following the day of receipt of the documents. Such notice shall be given to the bank from which it received the documents, or to the Beneficiary, if it received the documents directly from him.ii.Such notice must state all discrepancies in respect of which the bank refuses the documents and must also state whether it is holding the documents at the disposal of, or is returning them to, the presenter.
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45UCP 600 – Overview of Article 16UCP 600 Article 16Discrepant Documents, Waiver and NoticeArticle 16 (c) (iii):a) that the bank is holding the documents pending further instructions from the presenter; orb) that the issuing bank is holding the documents until it receives a
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  • Fall '16
  • Dr Ajape
  • Bill of lading, UCP, Nominated Bank

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