1. Duty owned to the applicant:
i. The duty to issue an efficacious credit: The buyer has approach
to
opening of
a documentary credit in favor of the seller, on the terms set out in the contract of sale that a contractual relationship comes into existence between
the
buyer and the bank.
ii. The duty to receive
and
examine the required
documents and make payment
in accordance with the credit's stipulation.
iii. The fraud exception: The fraud exception under a tendered document either
contains statements known by the beneficiary to be false or contains a forged
signature or a fraudulent alteration.
2. Duty owned to the beneficiary:
The obligation is to receive, examine the required documents and make payment. All that the issuing bank do should be consistent with the rule, actually that
is the
duty it owned to the beneficiary. These are:
i. The doctrine of strict compliance and standard for examining the documents
ii. Duty to raise all discrepancies in a reasonable time
3. The issuing bank's duty to reimburse the correspondent bank