URR725
Posted: Wed Oct 27, 2010 4:05 pm
Pls help me explain why " an issuing bank should not require a sight draft to be drawn on the reimbursing bank" according to Art9-URR725 ? Many thanks for your sharing!
Hi Pal,
IMHO, it depends on your Country Law, but sight draft in some Countries costs money for stamp duty without a reason: So it is better to draw by a Bank to bank Reimbursement letter, if TT reimbursement, by SWIFT MT 742 is not allowed.
Other comments appreciated
Ciao