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LC TERMS.
41D: Axis bank, Singapore by negotiation
Draft on: Axis bank, Singapore
Payment term: 180 days after the date of bill of lading.
Confirming bank: Axis bank
Query: Beneficiary want to fund immediately after comply presentation at counter of confirming bank without recourse.
Confirming bank is telling draft should be drawn on issuing bank instead of Axis Bank, Singapore. Then I will pay fund immediately on without recourse .
1. Q. Is it possible without acceptance of draft drawn on issuing bank, confirming bank can pay to beneficiary without recourse?
2. Q. Why confirming bank is asking amendment draft would be draw on issuing bank instead of confirming bank.
Looking forward to know prompt response.

UCP600 Art. 2:

Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank.

May be it will help you.

Mohiuddin

UCP 600, Art:8.
Confirming Bank Undertaking:
a.ii. Provided that the stipulated documents are presented to the confirming bank or to any other nominated bank and that they constitute a complying presentation, the confirming bank must negotiate, without recourse, if the credit is available by negotiation with the confirming bank.

Regards,

Isaac

my query is : Is this practice is ok? confirming bank ask draft would be draw on issuing bank instead of confirming bank.

Kindly advise
Is this practice is ok? confirming bank will ask draft/BE would be draw on issuing bank instead of confirming bank.

under payment sight/usance credit.

ISBP 745, Point- B10: When a credit is available by negotiation with a nominated bank or any bank, the draft is to be drawn on a bank other than the nominated bank.

Regards,

Isaac

UCP 600 Article 2 defines "Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank."
the conirming bank is liable anyway to negotiate a complying presentation on without recourse basis