Reference of URR in negotiable credit

[dholat]

dear all,

we all know that a credit available by negotiation need not to have any reimbursement instruction. is it then necessary to give a reference to URR in the LC along with the UCP?

[picant]

Hi Pal,

in a L/C available by negotiation is not necessary to indicate a reimboursing bank as the negotiating bank will request the issuing bank to provide cover. However in URR725 art. 2 e Claiming bank, it is indicated "bank which NEGOTIATES " and SWIFT MT740 in field 58 a required : Negotiating Bank (pls check new issue). So , IMHO, this is an opportunity as l/c could be confirmed too and in case of negotiation at XX days it is a common way to obtain reimbursement, specially in l/c issued in a foreign currency for both issuing and negotiating bank.

Other comments appreciated

Ciao

[iLC]

great insight dear picant. i never noticed that. will join u all tomorrow

[iLC]

to answer the original question, there is no requirement for a negotiation lc to have a reference of URR. to be more accurate, even LCs which are available only at the counter of issuing bank need not to have a reference of URR.

dear picant, i have checked the swift book. to be honest, im still to figure out why swift define 58a only as a negotiating bank. there is no reference of nominated bank. anyway, i fully agree with your xx day theory