| Query : |
A bill drawn under an import letter of credit was settled by the reimbursing bank (R) in favour of the negotiating bank (N), by despatching a demand draft to N. Unfortunately, the draft got misplaced while in-transit through the national postal system. A duplicate draft (in lieu of the original lost one) was issued by R, which reached N. However, the process of duplicate draft issuance took some time, since R exercised normal customary banking precaution of obtaining indemnity bond from N.
Now, N is claiming interest from the issuing bank (I) for the two months' period, i.e., from the original remittance till the receipt of duplicate draft at its end. The existing articles under UCDPC/URRDC seem silent on this issue. What is the international legal position, particularly with respect to I, the issuing bank?
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