Regarding the Role of Banks
•
It is important to note that documentary credit procedures
are not infallible. Things can and do go wrong. Since banks
act as intermediaries
between the buyer and seller, both
look to the banks as protectors of their interests. However,
while banks have clear cut responsibilities, they are also
shielded from certain problems deemed to be out of their
control or responsibility.
•
Several instances:
3
Regarding the Role of Banks
2. Banks are required to act
in good faith and exercise
reasonable care to verify that the documents submitted
appear to be as listed in the credit. They are, however, under
no obligation to confirm the authenticity
of the documents
submitted.
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