Professional Documents
Culture Documents
7)The banks in the city were closed for four consecutive days from 8-10-
2007 to 11-10-2007 due to riots.On 12-10-2007 an exporter client
approached the bank with a request to negotiate export documents under
LC,which was valid up to 10-10-2007.The negotiating bank refused to
negotiate stating that the LC was expired.But the exporter argued that he
was ready with the set of documents on 9-10-2007 and since the bank was
closed he could not submit the documents on 10-10-2007.
9)A LC for USD 2,00,000 called for an insurance policy (among other
documents) covering all the risks of loss and damage.A set of documents
was submitted for negotiation which included an insurance policy for USD
2,00,000 dated 29-9-2007.The date of shipment was 27-9-2007.The policy
covered Institute Cargo Clauses (A).
a)LC overdrawn.
11)A letter of credit was opened for USD 10,00,000 for 500 tons of
goods.100 tons were to be shipped each month from July 2007 to
November 2007 and the bills for USD 2,00,000 were to be drawn for each
month’s shipment.The bills for first two months were duly retired.There
was no shipment and bill in the month of September 2007.In the month of
October 2007,a bill for USD 2,00,000 was received by the opening
bank,covering 100 tons of goods. The opening bank refused to pay.
15)A Bill of Lading indicated that goods were received for shipment on 14-
9-2007.Last date for shipment was 15-9-2007.Documents were refused for
negotiation.
18)X Bank received bill under their import LC.On the covering schedule ti
was indicated by the negotiating bank that they had negotiated the bill
under reserve due to some discrepancies.The opening bank therefore
treated the bill as a bill on collection basis and presented it to the
importer,who communicated rejection after three weeks.Negotiating bank
insisted for payment by opening bank only.
21)An exporter submitted bill for negotiation and requested the bank that
Rupee value should be given to him only after getting the reimbursement
claim settled, which should be lodged immediately.He does not want to
pay any interest.
23)A B/L indicated that transhipment will take place and goods may be
loaded on deck.LC was silent about transhipment and deck
shipment.Documents were refused.
III)Two copies of combined packing and weight list are submitted when
LC calls for a packing list and a weight list.
b)LC calls for “ocean” B/L.This word does not appear on B/L.
28)A set of documents under a LC included two separate B/L both dated 1-
10-2007 indicating shipment on ship “Jala Varsha” and “Jala Raj”.The
destination for both was London.Negotiating bank refused to negotiate
stating that this is partial shipment.LC was silent about partial shipment.
IV)LC calls for “Clean on Board B/L”.On actual B/L clean word does not
appear.
34)I Bank sent a collection document to L Bank where the goods were
consigned directly to the address of L Bank with instructions to deliver
against payment of the bill.L Bank refused to take delivery of goods and
act as per instructions.However subsequently they decided to clear the
goods which were stored and insured until payment was received.IN the
process they incurred expenses on account of
demurrage,clearance,storage and insurance.The drawee did not pay these
charges.So,L Bank deducted these charges from proceeds.I Bank took
objection for this.
36)ABC Bank sent a bill for USD 50,000 to XYZ Bank for collection.The
documents included a Bill of Exchange payable 45th day from shipment.The
documents were to be delivered to the drawee against payment only.
37)TSR Bank sent a bill for collection to EFG Bank.The proceeds were
collected and remitted.Subsequently the drawee complained to the
collecting bank that the documents did not include test report at all and
inspection certificate was only one instead of two as required.It was
observed that in the “Collection Instruction” there was no mention about
test report and the number against inspection certificate was shown as
2.The remitting bank asserted that 2 originals of each of test report and
inspection certificate were sent along with other documents.
I)Interest to be collected from the drawee at 10% per annum for 20 days.
40)On 1-6-2007 GHI Bank received a bill for collection from SMT Bank.The
drawee refused to pay.GHI Bank immediately informed refusal to the
remitting bank on 10-6-2007 and sought their instructions.On 20-6-2002
GHI Bank returned the documents to SMT Bank as their were no
instructions.On 21-6-2007 they received a message from SMT Bank to
deliver documents to another drawee against payment.The documents
were lost in transit and SMT Bank did not receive the same.