sight draft

rania · Post by **rania** » Tue Apr 07, 2009 12:22 am

as per urr725, why an issuing bank should not require a sight draft to be drawn on the reimbursing bank?
rgds

shruti · Post by **shruti** » Tue Apr 07, 2009 4:00 pm

art 6e.If the reimbursing bank is requested to accept and pay a time draft, the reimbursement authorization must indicate the following, in addition to the information specified in (d) above:
i. tenor of draft to be drawn;
ii.drawer;
iii. drawee of draft, if other than the reimbursing bank;
iv. party responsible for acceptance and discount charges, if any.
A reimbursement amendment must state the relative changes to the above.

An issuing bank should not require a sight draft to be drawn on the
reimbursing bank.

Because the reimbursing bank has only option to honour / dishonour the claim , there are no intermediary stage of acceptance, :!:
anyone having contrary views ! Will appreciate .. 8-)
n k kalra

aprilee · Post by **aprilee** » Tue Apr 07, 2009 6:28 pm

ANOTHER QUESTION:ON WHAT CONDITION THE REIMBURSING BANK WOULD AGREE TO ACCEPT AND PAY A TIME DRAFT?IF THE DRAWEE IS NOT THE REIMBURSING BANK,HOW CAN IT ACCEPT THE TIME DRAFT?

shruti · Post by **shruti** » Tue Apr 07, 2009 9:49 pm

Dear Rania

possibly when it asked from it,

and/ or when it is playing the role of confirming bank under DC with usance not equal to zero.

reagrds
n k kalra

sight draft

sight draft

SIGHT DRAFT ON REIMBURSING BANK (urr)

TIME DRAFT

time draft