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Abstract

A bank documentary collections facility operates under the “Uniform Rules for Collections” I.C.C. Publication No. 322 (1978) which sets out the rights and responsibilities of both banks and customers. The bank to whom the documents are presented for onward despatch (the Remitting bank) has a duty to follow the seller’s instructions in the Collection Order. This will indicate what financial documents (if any) and commercial documents are to be presented, who is to pay for the collection charges, whether the documents are to be released to the buyer on a documents against payments or documents against acceptance basis.