Would you please clarify to me the meaning of sub-article 16(c)(iii)(b) saying:

 "that the issuing bank is holding the documents until it receives a waiver from the applicant and agrees to accept it, or receives further instructions from the presenter prior to agreeing to accept a waiver".

What is meant by "and agrees to accept it"? Does this imply that the issuing bank choosing this alternative has an obligation to accept applicant's waiver even though the latter goes bankrupt? Or does it mean that said issuing bank has always the possibility to refuse applicant's waiver?

Thank you for your efforts.

Dear Azmi Bouali

It simply means that at the end of the day it is the decision of the issuing
bank whether or not to accept or refuse discrepant documents. The issuing is
formally not bound by any decision/wish of the applicant in that respect.

So it does NOT mean that the issuing bank has an obligation to accept the
applicant’s waiver, but rather that the issuing bank always has the
possibility to refuse applicant's waiver?

I hope this helps you.

Best regards
Kim Christensen