Replying to [spider man]:
Allow me to draw your attention to the following articles of UCP 600:

Article 12.(a):
“Unless the nominated bank is the confirming bank, an authorisation to honour or negotiate does not impose any obligation on the nominated bank to honour or negotiate, except where expressly agreed to by the nominated bank and communicated to the beneficiary.”

Hence, if it had not advised the LC with obligation, or with indication to negotiate if a complying presentation had been made to it, a nominated bank is not obliged to negotiate.
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Article 2:
“Presentation means either the act of delivering documents under a credit to the issuing bank or nominated bank or the documents so delivered.”

Article 6.(e):
"..... a presentation by or on behalf of the beneficiary must be made on or before the expiry date."

A complying presentation can be made by the beneficiary or on his behalf, to the nominated bank or to the issuing bank.
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Article 2:
“Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank.”

Now to respond to the questions:

You asked: “(1) Can the presenting bank claim reimbursement? (2) but how will it claim reimbursement when it has not paid/negotiated the docs? (3) Then after receiving authorization from issuing bank, it will claim reimbursement from reimbursing bank?"

If I take the first two together, I have to surmise that you are now naming the nominated bank (that did not or refused to negotiate) as the ‘presenting bank’. The question is: ‘Presenting’ to whom? We have to be clear about it.

Because it has not negotiated, the nominated bank now actually wears the hat of the presenter, presenting documents to the issuing bank ON BEHALF OF THE BENEFICIARY. Naturally it cannot claim reimbursement, for reasons that you have given. Negotiation means giving value. No value given, therefore no negotiation done, no one was out of pocket, hence the matter of REIMBURSEMENT, or the lodging of a claim for reimbursement does not arise. In the scenario described, the nominated bank abrogated its responsibility, and confined itself to being a mere post office or messenger for the beneficiary.

Remember that, for a complying presentation to be followed by negotiation or payment (honour), the presentation must be within the validity of the credit. Under article 7, the issuing bank is always liable to honour under its own credit IF a valid, complying presentation is made to it.

Hence, only if a complying presentation IS made to it, within the validity of the credit, by the beneficiary or on his behalf (even by the bank that chickened out), the issuing bank is obliged to honour and pay the beneficiary.

Hope the issues are clear now?