Can Issuing Bank Be A Nominated Bank Under UCP600

[nesarul]

Dear all,
pls comments
can issuing bank be a nominated bank?
regards
nesar

[shahriar]

dear nesar,

to be a nominee, its necessary to be nominated. i dont think a issuing bank can nominate itself.

regd

shahriar

[cristiand969]

NO ! A nominated bank acts as an agent of issuing bank as far as transaction is concerned.

[Navi]

Dear friends,
In my opinion it depends from which side you look. If we define nominated bank as "the bank with which the credit is available" and if the LC is available with the issuing bank, then issuing bank may be seen as nominated bank.
.
regrds

[cristiand969]

Dear Navi,
'IF' in such a definition does not necessarily represents an equivalent of issuing bank as a nominated bank and has probably been misinterpreted. This is my view due to following reasons:
1. If we look to the definition of Negotiation: ' Purchase by the NOMINATED bank of drafts...... ' ISSUING bank never negotiates, it honour.
2. Some paragraphs of art. 8 will no longer be in place if an issuing bank can be a nominated bank : art 8 c says: A confirming bank undertakes to reimburse another nominated bank that has honoured or negotiated a complying presentation and forwarded documents to the confirming bank ?????. If we consider issuing bank to equate to a nominated bank this article will be upside down.

[Navi]

Dear cristiand969,
.
I mostly agree with your post. I wanted to take yr attention to definition of nominated bank. Of course it does not comprise the matter fully. But in cases when LC is available only with the issuing bank, will it be wrong to say that "issuing bank is at the same time nominated bank?" Maybe...
.
If the LC is to be issued available by negotiation, then there must be a nominated bank. Reimbursement of nominated bank either by issuing bank or confirming bank are the events when presentation is honoured by a nominated bank.
.
regards

[cristiand969]

Dear Navi,
You answered to your questions by yourself.
Definition of nominated bank does not refer to issuing bank but to the situation when credit is available with other bank than the issuing bank. If you still stick to that inclusion how would you interpret the 3 elements of art. 16 namely:
A nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank shall each have a maximum of five banking days following the day of presentation to determine if a presentation is complying. The word 'and' in bold will imply that (based on your consideration) issuing bank being also 'nominated' bank will have maximum 10 days (5+5).
regards

[jmitra]

this is not a new issue. in my opinion, it may be possible to show by logic that issuing bank is a nominated bank, but that wont change the reality; issuing bank is not a nominated bank. sometimes we should more of common sense than less logic

mitra