What Makes A Bank Acting On Its Nomination?

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
User avatar
shahriar
Posts: 923
Joined: Fri May 16, 2008 1:03 am
First Name: Shahriar
Last Name: Masum
Organization: Mutual Trust Bank
Filter: Two Plus Two =: 4
Location: Bangladesh

What Makes A Bank Acting On Its Nomination?

Post by shahriar » Tue Jun 24, 2008 9:20 pm

dear friends,

how do you interpret the term "acting on its nomination"

what makes a bank acting on its nomination?

regd

shahriar

bhossain
Posts: 4
Joined: Sat May 24, 2008 7:44 pm

Re: acting on its nomination

Post by bhossain » Wed Jun 25, 2008 11:55 pm

I would interpret words "acting on its nomination" to act under the authorisation to fulfill the required function.

Md.zakir Hossen
Posts: 129
Joined: Tue May 20, 2008 10:14 pm

Re: acting on its nomination

Post by Md.zakir Hossen » Thu Jun 26, 2008 9:57 pm

I would interpret acting on its nomination means acting the role as Issuing Bank instruct either nominated Bank or Paying Bank or accepting Bank.
May I wrong.

User avatar
shahriar
Posts: 923
Joined: Fri May 16, 2008 1:03 am
First Name: Shahriar
Last Name: Masum
Organization: Mutual Trust Bank
Filter: Two Plus Two =: 4
Location: Bangladesh

Re: acting on its nomination

Post by shahriar » Thu Jun 26, 2008 10:26 pm

im very sorry for not being able to communicate my question properly.
while considering the term acting on its nomination, the popular concept is that the nominated must negotiate or honor a presentation to perform the act of nomination. how far do you agree with this?

regd

shahriar

User avatar
nesarul
Posts: 513
Joined: Sun May 18, 2008 9:46 pm
First Name: Nesarul
Last Name: Hoque
Organization: Mutual Trust Bank
Filter: Two Plus Two =: 4
Location: Bangladesh

Re: acting on its nomination

Post by nesarul » Thu Jun 26, 2008 11:58 pm

Dear All,
But how come the issuing bank understand that the nominated bank acted on its nomination under diffrent types of credit availability?
regards
nesar

Md.zakir Hossen
Posts: 129
Joined: Tue May 20, 2008 10:14 pm

Re: acting on its nomination

Post by Md.zakir Hossen » Fri Jun 27, 2008 12:01 pm

Dear Shariar
I do not agree with You "the nominated must negotiate or honor a presentation to perform the act of nomination".It is possible if the nominated Bank is the confirming Bank for complying presentation.
If I wrong then add..........

Post Reply