Drawee for Confirmed Letter of Credit

[kapsdubai]

I have an LC opened from Bank A in Africa, which is confirmed by Bank B in Europe; where reimbursing bank is Bank C in USA; and LC is advised by Bank D in Dubai.

There is NO Clause 42D/A in the LC.

Please confirm who should be 'DRAWEE' in the Bill of Exchange? Reimbursing bank C or Confirmed Bank B?

[picant]

same as next

[anhphuoc892]

In my opinion, It is reimbursing bank

[cristiand969]

I would not see the necessity of presenting a draft since there is a reimbursing bank involved unless the credit is exclusively available by acceptance. The presence of a reimbursing bank presumably makes the credit available by payment and not by negotiation which would require a draft to be drawn on a nominated party.
Therefore:
1. In case the credit is available by negotiation with confirming bank: the draft must be drawn on a bank other than nominated bank (Paragraph B10 of ISBP)
2. In case the credit is available by acceptance, the provisions of paragraph B11 or B12 of ISBP should be followed depending who is the nominated bank and whether it agrees to act on their nomination

[DarkKnight]

why ask for a draft when there is no need for it.