Available With Issuing Bank By Negotiation

umsara · Post by **umsara** » Sun May 25, 2014 4:01 am

i highly appreciate every once co operation for the following case -

If A Credit Stipulated "Available With Issuing Bank By Negotiation" May Another Bank Or Banks Negotiate The Documents Under The Credit?

Can A Draft Be Drawn On A Confirming Bank If A Credit Is Available With It By Negotiation? What If The Credit Is Available With It By Sight Payment, Deferred Payment Or Acceptance?

Navi · Post by **Navi** » Wed May 28, 2014 11:37 am

Hi friend,

Firstly, A credit may not be issued available with the issuing bank by negotiation. Negotiation means the purchase of drafts (drawn on a bank other than a nominated bank) and/or documents under a complying presentation... Therefore, drafts cannot be drawn on confirming bank under a credit issued available with the confirming bank by negotiation also.

chandraemani · Post by **chandraemani** » Wed May 28, 2014 4:50 pm

how can we determine who is the nominated bank?

gegeeee · Post by **gegeeee** » Mon Jun 02, 2014 3:12 pm

It is not a correct formulation, LC can not be available with issuing bank by negotiation. Correct formulation will be LC avaialble with nominated bank by negotiation but draft drawn on issuing bank. Actually it is the same LC avalilable with issuing bank by acceptance drawn drawn on issuing bank.

tituisrt · Post by **tituisrt** » Mon Sep 15, 2014 12:23 am

This is not a correct format. Lc can't be issued available with issuing bank by negotiation.because by negotiation draft will be drawn on other than negotiated bank.issuing bank only can do honour(available by sight, deffered, acceptance
) as per article 7