7. Bank A issued two documentary credits (DCs) as follows: Amount Item Expiry date and place...

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7. Bank A issued two documentary credits (DCs) as follows: Amount Item Expiry date and place Advising bank Reimbursement Beneficiary Other information DC001-07 RM50,000.00 Malaysia, 31 May 2007 Bank B, Kuala Lumpur, Malaysia Payment upon receipt of complied documents at the issuing bank ABX Trading Sdn Bhd, Kuala Lumpur DC002-07 USD50,000.00 Issuing bank, 1 June 2007 Bank D, Bangkok, Thailand Claim reimbursement from Bank C, New York DHL Trading Ltd, Thailand (DHL) DC confirmation by Bank D is requested The above DCs also stipulated: Issuing bank: Bank A, Kuala Lumpur, Malaysia. • Available by negotiation at sight at the counter of any bank. Document checking fee is RM50.00 and discrepancies fee is RM100.00, if any, are for the account of beneficiary. Required: a) Briefly explain the liability of a confirming bank under a documentary credit. b) Complied documents under DC001-07 were subsequently presented at Bank B, Sandakan (branch of Bank B, Kuala Lumpur) on 31 May 2007 and later forwarded and reached Bank A, Kuala Lumpur on 2 June 2007. Documents under DC002-07 were presented to Bank A, Bangkok, Thailand (branch of Bank A, Kuala Lumpur) by DHL via its bank, Bank D, on 29 May 2007 and later forwarded and reached Bank A, Kuala Lumpur on 2 June 2007. Assuming 29 May 2007 till 2 June 2007 were banking days in Malaysia and Thailand, did the presentations meet the stipulations of the DCs? Explain your answer. 7. Bank A issued two documentary credits (DCs) as follows: Amount Item Expiry date and place Advising bank Reimbursement Beneficiary Other information DC001-07 RM50,000.00 Malaysia, 31 May 2007 Bank B, Kuala Lumpur, Malaysia Payment upon receipt of complied documents at the issuing bank ABX Trading Sdn Bhd, Kuala Lumpur DC002-07 USD50,000.00 Issuing bank, 1 June 2007 Bank D, Bangkok, Thailand Claim reimbursement from Bank C, New York DHL Trading Ltd, Thailand (DHL) DC confirmation by Bank D is requested The above DCs also stipulated: Issuing bank: Bank A, Kuala Lumpur, Malaysia. • Available by negotiation at sight at the counter of any bank. Document checking fee is RM50.00 and discrepancies fee is RM100.00, if any, are for the account of beneficiary. Required: a) Briefly explain the liability of a confirming bank under a documentary credit. b) Complied documents under DC001-07 were subsequently presented at Bank B, Sandakan (branch of Bank B, Kuala Lumpur) on 31 May 2007 and later forwarded and reached Bank A, Kuala Lumpur on 2 June 2007. Documents under DC002-07 were presented to Bank A, Bangkok, Thailand (branch of Bank A, Kuala Lumpur) by DHL via its bank, Bank D, on 29 May 2007 and later forwarded and reached Bank A, Kuala Lumpur on 2 June 2007. Assuming 29 May 2007 till 2 June 2007 were banking days in Malaysia and Thailand, did the presentations meet the stipulations of the DCs? Explain your answer. 7. Bank A issued two documentary credits (DCs) as follows: Amount Item Expiry date and place Advising bank Reimbursement Beneficiary Other information DC001-07 RM50,000.00 Malaysia, 31 May 2007 Bank B, Kuala Lumpur, Malaysia Payment upon receipt of complied documents at the issuing bank ABX Trading Sdn Bhd, Kuala Lumpur DC002-07 USD50,000.00 Issuing bank, 1 June 2007 Bank D, Bangkok, Thailand Claim reimbursement from Bank C, New York DHL Trading Ltd, Thailand (DHL) DC confirmation by Bank D is requested The above DCs also stipulated: Issuing bank: Bank A, Kuala Lumpur, Malaysia. • Available by negotiation at sight at the counter of any bank. Document checking fee is RM50.00 and discrepancies fee is RM100.00, if any, are for the account of beneficiary. Required: a) Briefly explain the liability of a confirming bank under a documentary credit. b) Complied documents under DC001-07 were subsequently presented at Bank B, Sandakan (branch of Bank B, Kuala Lumpur) on 31 May 2007 and later forwarded and reached Bank A, Kuala Lumpur on 2 June 2007. Documents under DC002-07 were presented to Bank A, Bangkok, Thailand (branch of Bank A, Kuala Lumpur) by DHL via its bank, Bank D, on 29 May 2007 and later forwarded and reached Bank A, Kuala Lumpur on 2 June 2007. Assuming 29 May 2007 till 2 June 2007 were banking days in Malaysia and Thailand, did the presentations meet the stipulations of the DCs? Explain your answer.

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a The liability of a confirming bank under a documentary credit involves the bank prov... View the full answer