9. GINA Bank issued a letter of credit on the instructions of its account party calling...

 

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9. GINA Bank issued a letter of credit on the instructions of its account party calling for the payment of drafts upon the presentation of documents showing shipment by a certain date. The bank examined the documents and paid the beneficiary's drafts. The account party refused to take the documents and reimburse the bank because the shipping date was incorrectly stated in the documents . The bank sued the beneficiary for a return of its money for presenting nonconforming documents. The bank brought its action undrer the UCP500 . The beneficiary claims that under the UCP the bank was precluded from complaining about the discrepancies because the bank had failed to object to the documents in a timely fashion. UCP500 , Article 14 ,states that an issuing or nominated bank must notify the beneficiary ( or another bank from which it is receiving the documents) of the rejection without delay but no later than the close of the seventh banking day following the day of receipt of the documents. Judgment for whom and why? 9. GINA Bank issued a letter of credit on the instructions of its account party calling for the payment of drafts upon the presentation of documents showing shipment by a certain date. The bank examined the documents and paid the beneficiary's drafts. The account party refused to take the documents and reimburse the bank because the shipping date was incorrectly stated in the documents . The bank sued the beneficiary for a return of its money for presenting nonconforming documents. The bank brought its action undrer the UCP500 . The beneficiary claims that under the UCP the bank was precluded from complaining about the discrepancies because the bank had failed to object to the documents in a timely fashion. UCP500 , Article 14 ,states that an issuing or nominated bank must notify the beneficiary ( or another bank from which it is receiving the documents) of the rejection without delay but no later than the close of the seventh banking day following the day of receipt of the documents. Judgment for whom and why?

Answer rating: 100% (QA)

As per UCP500 Article 14 the bank was required to notify the beneficiary about rejec... View the full answer