Provisional Translation
| OTO No. | 395 | Classification | MITI-104 |
|---|---|---|---|
| Date of Acceptance | January 22, 1990 | Ministry/Agency Receiving Complaint | Economic Planning Agency |
| Responsible Ministries | Ministry of International Trade and Industry | Related Laws | |
| Complainant | Firm in Hong Kong | Exporting Countries | Hong Kong |
| Subject | Regarding the implementation of the procedures for export credit insurances, reconsideration of the present practice of refusing to recognize payment arrears as grounds for an insurance claim. | ||
| Details of Measures | Believing that responding to overdue cases such as the present one (in which the bank purchased a note due despite the payment's being in arrears) flexibly on a case-by-case basis would considerably complicate the operational management of the insurance scheme and sharply reduce its value to those using it, a notification was issued on February 17, 1973, to promote the sound management of the insurance system and to make it more convenient to use, this notification sets forth clear and reasonable standards for overdue notes (including regulatory casing such as proving for no fault purchase when it is clear that the arrears is not related to any deterioration in the payer's credit worthiness or other like causes) and all of the banks availing themselves of the export credit insurance scheme purchase documentary bills from the issuer under these standard. After consideration of the case in question, it was explained that it is impossible to pay the insurance claim since these provisions cannot be invoked in that there was no proof offered by the insured that the nonpayment was unrelated to any deterioration in the payer's credit worthiness. |
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| Classification of Processing | D | Directions | IV |
| Remarks | |||