Narrative

Royal Bank of Scotland, London, receives documentary credit number DAE74568 from Nederlandsche Middenstandsbank, Amsterdam, issued on July 21, 2013.

Royal Bank of Scotland acknowledges the receipt of the credit with its reference IMP124678, indicating that it has added its confirmation to the credit. Its charges are to be settled at a later date.

(To review the MTs 700, 730, 720 relating to this documentary credit, see the respective Example sections)

Royal Bank of Scotland negotiates the credit, determines the documents are in order and debits the account it services for Nederlandsche Middenstandsbank.

Nederlandsche Middenstandsbank, Amsterdam disagrees and claims a refund. It advises Royal Bank of Scotland (September 21, 2013, reference IMP124678) that the documents presented have been refused owing to discrepancies:

1. Partial shipment was effected.

2. Declaration that vessel is running regular line service not presented.

The documents are being held by Nederlandsche Middenstandsbank pending further instructions. Charges and drawings totalling GBP 123,798 (Drawings of 123,675 + Cable 10 + Royal Bank of Scotland charges 95 + Interest 18) are to be credited to Nederlandsche Middenstandsbank's account value September 27, 2013.