In LC, negotiating bank will be paid within 5 banking days by the issuing bank after decide that the documents is in order, issuing bank will ask from buyer for the payment that, what's the responsibility of Issuing bank if his checking of documents is false and cause financing lost of buyer?
Quoting from [rahmanhakim]:In LC, negotiating bank will be paid within 5 banking days by the issuing bank after decide that the documents is in order, issuing bank will ask from buyer for the payment that, what's the responsibility of Issuing bank if his checking of documents is false and cause financing lost of buyer?
First welcome to the Forum. Second I want to see if this is what you actually mean.
Your question seems to be asking that if the issuing bank approves the documents even though they are not in accordance with the LC what are the ramifications for which the applicant can seek damages.
To simply answer that question would not be possible as banking laws in almost all countries vary in degrees. The applicant/buyer could conceiveably bring a lawsuit against a banking institution if they could show intent to misrepresent or an absense of sound judgement on behalf of the banking institution for damages of loss of sales. However, this scenario seems unlikely as most banks still overly scrutinize documents before approval and even in the cases of deviation of the specific terms will ask the applicant if they are willing to waive a specific deviation.
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