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Draft To Be Drawn On Issuing Bank Or Nominated Bank?
Posted: Tue Apr 08, 2014 7:24 pm
by abelhoci
An LC is available for payment in the seller’s country and it requires presenting of sight drafts(normally by payment the draft is not always required) , will in this case the drafts be drawn on issuing bank or nominated bank ?
drafts
Posted: Wed Apr 09, 2014 12:38 am
by picant
Hi Pal,
being the l/c by payment, draft must be drawn on the nominated bank.
Other comments appreciated
Ciao
Draft To Be Drawn On Issuing Bank Or Nominated Bank?
Posted: Thu Apr 10, 2014 2:08 am
by langtuhaohoa66
I agree with Picant. On the other hand, available for payment in the seller’s country, draft should drawn on Nominated bank is suitable. However, If LC available for payment in the buyer ’s country, i.e issuing bank, draft should drawn on issuing bank. Pls also note that, in all cases, Field 31D(date and expiry date) and Field 41 (Available with...by...) must consistent with each other.
Draft To Be Drawn On Issuing Bank Or Nominated Bank?
Posted: Thu Apr 17, 2014 1:56 pm
by gegeeee
If seller insisit LC to be available at it's premises and you require draft to be drawn on you lets make; LC available with nominated bank by negotiation with sight payment draft drawn on you (issuing bank).
Confusion
Posted: Fri Apr 18, 2014 11:27 am
by picant
Hi Pals,
negotiation is a way to utilize the l/c, payment is another one, so you must decide !
Then, one thing, seller and buyer may decide documents to present, but draft is an interbank question except if
drawn on applicant.
Diversion in what is the ICC Rules, may cause misunderstanding and liability for issuing bank too.
Other comments appreciated
Ciao