Why The Method Payment Of Negotiation Missing Here?

[dinesh2476]

Dear experts,

Article 7
Issuing bank undertaking:
C.Reimbursement for the amount of complying presentation under a credit available by acceptance or deferred payment is due at maturity, whether or not the nominated bank prepaid or purchased before maturity.

Why the method payment of negotiation missing here?

Thanks & Regards
Dinesh

[dinesh2476]

Dear Experts,

All opinions are welcome.

Thanks&Regards
Dinesh

[luiza]

I hope that my answer not being late...
Because the issuing bank cannot negociate. In conformity with UCP 600 art.7 b we can read that issuing bank is irrevocable bound to honour as of the time ot issues the credit.

regards

[hardy2175]

Negotiation is payment on or before the date of reimbursement . So negotiation is not a method of payment , infact it is a method of prepayment . First a tenor/ due date is decided as per the method of payment and then a bank other than the issuing bank decides to prepay i.e negotiate and gets reimbursed by the issuing bank.

[poojagandhi]

Issuing bank will honour and not negotiate. For negotiation reimbursement is due from another bank, whereas issuing bank cannot reimburse itself. So issuing bank will honour.