Field 41A/D

[Wayneso]

Greetings All

on a MT700 under field 41, kindly advise what do the following mean and what are the difference between these two :

By Negotiation
.
By Acceptance

Your comments will be greatly appreciated.

[alaaebrahem]

Dear,

payment by negotiation, the confirming bank would have to honour the complying presentation, i.e., pay at sight. If the credit requests a draft, it would be a sight draft made out on the confirming bank but in case of the available by acceptance, the confirming bank would have to honour the complying presentation, i.e., to accept a bill of exchange (draft) drawn by the beneficiary and pay at maturity. The confirming nominated bank is authorized to prepay or purchase a draft accepted by that nominated bank but it would be entitled to reimbursement only at its maturity

Regards,
Alaa

[Wayneso]

Thank you for your response Alaa

so what you are actually saying is ... "negotiation" would refer to a sight circumstance and "acceptance" would refer to a usance circumstance ?