I m little bit confused in confirm lc draft should be drawn on which bank
A.issuing bank B.confirming bank
C.negotiating bank
In Confirm LC Draft Should Be Drawn On Which Bank
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pj4u44
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1984
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Confirm LC Draft
It should be drawn on issuing bank if the credit is available with the confirming bank. It may also be drawn on other nominated bank.
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mano
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Draft
dear we have three situations in the draft and the matter of availability will clear the drawee party regardless confirmation instructions
1-in acceptance credit the nominated bank will be the drawee enabling it to act according its nomination if it is the confirming bank the draft will be drawn on that bank if it is issuing bank the draft will be drawn on the issuing bank article 7 and 8 could help you to get this point
2-if the credit is available by negotiation of course with a nominated bank other than the issuing bank as issuing bank doesn't negotiate, the daft practically will be drawn on a party other than the nominated bank in practice it could be the issuing bank or any bank that holds accounts of the issuing bank like reimbursing bank and URR 725 detailed such action
Article 2 the definition of negotiation could help you to get this point
3-if it's available with any bank by acceptance the draft will be drawn on any bank that would accept such nomination, but when it is available with any bank by negotiation the draft would be drawn on a bank other than the one who accepts the nomination to negotiate and it could be in practice the issuing or reimbursing bank
regards
1-in acceptance credit the nominated bank will be the drawee enabling it to act according its nomination if it is the confirming bank the draft will be drawn on that bank if it is issuing bank the draft will be drawn on the issuing bank article 7 and 8 could help you to get this point
2-if the credit is available by negotiation of course with a nominated bank other than the issuing bank as issuing bank doesn't negotiate, the daft practically will be drawn on a party other than the nominated bank in practice it could be the issuing bank or any bank that holds accounts of the issuing bank like reimbursing bank and URR 725 detailed such action
Article 2 the definition of negotiation could help you to get this point
3-if it's available with any bank by acceptance the draft will be drawn on any bank that would accept such nomination, but when it is available with any bank by negotiation the draft would be drawn on a bank other than the one who accepts the nomination to negotiate and it could be in practice the issuing or reimbursing bank
regards
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tituisrt
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Draft
Hi,
Draft drawn on which bank totally depends on the availability of the credit.
1.By Acceptance draft must be drawn on the bank credit is available with.
2.By negotiation draft must be drawn on other than the nominated bank(Note that Issuing Bank Can,t negotiate.It only can Honour).
Thanks
Draft drawn on which bank totally depends on the availability of the credit.
1.By Acceptance draft must be drawn on the bank credit is available with.
2.By negotiation draft must be drawn on other than the nominated bank(Note that Issuing Bank Can,t negotiate.It only can Honour).
Thanks
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RAHULCH
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draft drawn on
if the LC states that it requires a draft.. it has to be drawn either on issuing bank / confirming bank/ nominated bank as LC states.. deifinitely not on the negotiating bank... reason being "THE DEFINITION OF NEGOTIATION"
Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank.
Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank.