The effects of the responsibility of the correspondent bank implementer of the documentary credit (A comparative study)

Prof.  Dr. Ibrahim Ismail Ibrahim Al-Rubaie

AL-Alamain Institute for Graduate Studies

Nawfal Rahman Malghit al-Jubouri Ph.D. student

Abstract:

The responsibility of the correspondent bank is the documentary credit executor when the obligations are breached, a subject that arranges important implications, which makes the bank open for approval either to complete the implementation procedures and transfer documents to the buyer despite their violation, in the hope that he will accept these documents when he believes that these violations are not important for the buyer to make him refuse to accept While retaining his right to claim compensation for all damages suffered due to that, The bank may avoid opening the credit-bearing any risk and decides to refuse to accept the documents and leave them with the correspondent bank, and the latter is obliged to dispose of them if he is not able during the remainder of the remaining credit period to correct the violations that are contained in these documents, and leaving these documents may constitute difficulty in their disposal and incurs any penalty in return Getting rid of these documents, so these traces are among the issues that are extremely important and need to be detailed, through two studies. The first is devoted to compelling the correspondent bank to compensation and the second is to leave the documents with this last bank.

Keywords: Correspondent bank, documentary credit, compensation, leaving documents, letter of credit .

Paper