Endorsement in Bill of exchange

[Nivas]

Hi
Documents required
1. Draft to be drawn on 60 days sight in favor of ABC bank(issuing bank).

document received as:
1. Bill of exchange mentioning "pay at 60 days sight to XYZ bank amounting Usd 10,000.

Issuing bank name
ABC Bank

Beneficiary Name
aaaaaa"

my question is does the draft need to endorsed by XYZ Bank as it is issued in favor of them?? can we treat this as discrepancy? ISBP B15 also says so if i am not wrong.

Further issuing bank name is mentioned in bill of exchange as well. Does it mean that the draft is issued in favor of issuing bank??

Need your views. Thanks.

[picant]

Hi Pal,

normally a bill of exchange is drawn on issuing bank or on another bank(reimbursing) indicating that
"drawn on documentary credit no..... issued by ...... on....."
The endorsement is not necessary except when required(e.g. in case of l/c by acceptance and
will discount this bill of exchange.
ICC is discussing if bills of exchange or drafts are still necessary in a l/c!
Other comments appreciated
Ciao

[Nivas]

Thanks for ur views.

[TaiOanlan]

Banking practice in most Asian countries is nego bank to endorse it.

[Nivas]

thanks for ur views Taioanlan. So if is not endorsed by the nego. bank, shall we treat this as discrepancy??

[TaiOanlan]

Dear Nivas,
In my opinion, you can raise it as discrepancy.

[picant]

Hi Pal,

just to add that discrepancy on bill of exchange or draft are not possible, except when drawn on applicant and required as document.
Ciao

[Siddhanjan]

In your case, endorsement of negotiating bank is not required. Endorsement is required if the draft states like:
"Pay at 60 days sight to XYZ bank amounting Usd 10,000 to the order of <negotiating bank>"