Law 5110 Study Guide - Quiz Guide: Royan, Bankers Trust
Document Summary
Article 14(b): bank has a maximum of five banking days to determine if a presentation is complying. Article 15: when a bank determines that a presentation is complying, it must honour and forward the documents to the confirming bank or issuing bank. Article 16(b): when an issuing bank determines that a presentation does not comply, it may in its sole judgement approach the applicant for a waiver of the discrepencies. This does not, however, extend the period mentioned in s-article 14(b) (five working days): waiver is because they may want to proceed with payment despite a breach. Sole judgement important as it means the buyer cannot sue the bank for not approaching them for a waiver. Fortisbank (see ele casenote): bank refused to honour the credit because the presentation of the documents by the seller was not compliant with what was established by the credit.
