Negotiation Is Known As A Risk Taking By The Nominated Bank

[shahriar]

someone please help me on the issue. apart from ucp, among the experts, negotiation is known as a risk taking by the nominated bank and that what makes negotiation different from the discounting. now if a deferred payment under taking from the issuing bank is purchased by the nominated bank, then there is no risk. so is it a negotiation?

regd

shahriar

[nesarul]

Dear,
hope fine,
I have thought on your posting from the date of he same.
Here i want to analysis in where the application of negotiation has been incorporated. I found the following:
1. Negotiable instrument act
2. UCP
3. ISP
4. UCC.
apart from UCP [according to your posting], i think look into the uses and types of negoitiation on above rule and its distinction with DPU will provide an idea. isn't it?
regards
nesar

[Md.zakir Hossen]

Dear Shariar

"deferred payment under taking from the issuing bank is purchased by the nominated bank" I think does not constitute Negotiation.Though some risk also included in deferred payment undertaking.

[shahriar]

but definition of negotiation includes prepay or purchase before maturity by the nominated bank!!!

regd

shahriar