Under a collection subject to URC 522, documents were sent to a collecting bank by a remitting bank, with the instructions to release documents to the drawee against payment in local currency, but for the collecting bank to undertake to pay in foreign currency after receiving approval from the local authority. However, whilst the collecting bank advised that it had received the drawee's undertaking to pay, payment was not forthcoming despite documents being released to the drawee. It was concluded that, under URC 522, a collecting bank must inform a remitting bank without delay if it chooses not to act following its collection instructions, and that by the action of releasing documents to the drawee without receiving payment, the collecting bank was liable for not following the collection instruction and for failing to return documents.
A credit was issued, subject to UCP 600, payable at 150 days from the date of the transport document. After presentation of the documents, the issuing bank confirmed that payment would be made at maturity. Prior to payment, the applicant obtained a court order preventing the issuing bank from paying. It was concluded that a credit cannot be cancelled without the consent of the beneficiary, and that an issuing bank must comply with a court order.
A credit, subject to UCP 600, included a clause in the additional conditions referring to an underlying contract and the requirements thereunder without indication of any document required for compliance of such requirements. Just after issuance, the issuing bank requested the advising bank to cancel the credit. Within the timelines of the credit, the advising bank presented compliant documents to the issuing bank, which were returned by the issuing bank on the premise that the credit was cancelled. It was concluded that the additional condition was non-documentary, and that the credit could not be cancelled without the consent of the beneficiary.