ARTICLE 2 says 'Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents, by either advancing or agreeing to advance funds to the beneficiary.'
nominated bank in a freely available credit: ABZ BANK
Applicant : A company
Ben: B and Sons
Issuing bank: M bank
Q. for negotiation whose bank name to be mentioned in draft? As the article says 'drawn on a bank other than the nominated bank'? hoping to get crystal clear answer.
ucp article 2 negotiation
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Rabi
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picant
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Re: ucp article 2 negotiation
Hi Pal,
if the draft in on negotiating bank it represents a credit valid for payment. So we have to exclude the negotiating bank, allowing all other banks, normally the issuing bank, but it is included in the wording of
l/c.
Other comments appreciated.
Ciao
if the draft in on negotiating bank it represents a credit valid for payment. So we have to exclude the negotiating bank, allowing all other banks, normally the issuing bank, but it is included in the wording of
l/c.
Other comments appreciated.
Ciao