Int'l Rules - Trade‎ > ‎UCP 600‎ > ‎C. Examination‎ > ‎

Article 16

Discrepant Documents, Waiver and Notice

a.     When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank determines that a presentation does not comply, it may refuse to honour or negotiate.

b.     When an issuing bank determines that a presentation does not comply, it may in its sole judgement approach the applicant for a waiver of the discrepancies. This does not, however, extend the period mentioned in sub-article 14 (b).

c.     When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank decides to refuse to honour or negotiate, it must give a single notice to that effect to the presenter.

The notice must state:

i.         that the bank is refusing to honour or negotiate; and

ii.         each discrepancy in respect of which the bank refuses to honour or negotiate; and

iii.     a)     that the bank is holding the documents pending further instructions from the presenter; or

 b)     that the issuing bank is holding the documents until it receives a waiver from the applicant and agrees to accept it, or receives further          instructions from the presenter prior to agreeing to accept a waiver; or

 c)     that the bank is returning the documents; or

 d)     that the bank is acting in accordance with instructions previously received from the presenter.

d.     The notice required in sub-article 16 (c) must be given by telecommunication or, if that is not possible, by other expeditious means no later than the close of the fifth banking day following the day of presentation.

e.     A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may, after providing notice required by sub-article 16 (c) (iii) (a) or (b), return the documents to the presenter at any time.

f.     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.

g.     When an issuing bank refuses to honour or a confirming bank refuses to honour or negotiate and has given notice to that effect in accordance with this article, it shall then be entitled to claim a refund, with interest, of any reimbursement made