Legal Question in Banking Law in Libya

Dear Sir:

If a presentation of documents were made after the expiry date of an LC and a demand were sent by our banks been ignored completely, what options do we have to seek payments???? According to UCP 600 ruling article 16, F and C and article 14, B, and since we made our demand more than 3 months now, the beneficiary�s bank have 5 working days to reply to the demand or decline to pay or make some inquiries regarding the LC which in affect requires the bank to give a formal notice to the presenter, stating each discrepancy in respect of which is refusing to honor or negotiate, these notices must be communicated to the presenter before close of business on the fifth banking day following the day of receipt also � If an issuing Bank or a confirming bank fails to act in accordance with the provisions of this article, it shall be precluded from claiming that the documents do not constitute a complying presentation� and according to article 16(d) and to my understanding and my interpreting of such ruling this means the issuing bank has to comply with the payment,,,can the bank still refuse to settle even though the period of 5 days had long gone.

Best Regards

Khalid El-Sherif

ceo

Rai Consultancy&Technical Services

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