Acceptance On Letterhead Instead of Draft

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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ngochuong
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Acceptance On Letterhead Instead of Draft

Post by ngochuong » Thu Nov 15, 2012 11:49 pm

COULD THE COLLECTING BANK RELEASE THE D/A DOCS AGAINST THE DRAWEE'S ACCEPTANCE ON ITS LETTER HEAD PAPER INSTEAD OF ON THE DRAFT?
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picant
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URC 522 and sundries

Post by picant » Fri Nov 16, 2012 7:00 pm

Hi Pal,

no, if the collection contains a draft.
If draft not provided an undertaking by drawee could be in the form of drawee's letter.
See URC 522
Other comments appreciated
Ciao
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