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URR 525 Art 6(e) talks about Draft drawn on the Reimbursing Bank. I worked in Trade Finance since 1999 but never came across it operationally.
Can anybody give an example or work flow of 6(e) please?

Thanks.

Hi Pal,

a part URR725 is better, but draft may be understood a SWIFT Message too.
However, sometime it is necessary to send a draft to reimbursing bank and other documents to issuing bank.
On the remittance you will instruct reimbursing bank to cover you with your correspondent. in the second you will present documents sating that you have already reimburse yourself by sending draft to reimbursing bank.
Other comments appreciated
Ciao

Hello
I used to work for a Korean bank and this was common practice amongst the numerous Korean Banks. IE for a USD L/C, the documents would be sent to the IB and the drafts would be sent to their New York office (their correspondent) for reimbursement.

When I asked why this was the case, I was told so that the bank/beneficiary can hold onto the funds for a while longer. Obviously when you reimburse as per URR by SWIFT, the norm is usually 3 days, but it could take this long for the draft to arrive from London to America.

Thanks
Jackie