Best Trade Solution

Posted: **Mon Nov 10, 2008 8:42 am**

Dear all,
I have two questions here .
1. Wheher negotiation equals to bill purchased. In china, most banking practioners take the two concepts as one.
2. If the negotiating bank fails to claims reimbursement from the issuing bank or reimbursing bank, he retains the right of recourse. But why doesn't UCP stipulate this?

Ofei

Posted: **Mon Nov 10, 2008 9:06 pm**

technically speaking and according to an ICC opinion previously posted by me here, a credit available by negotiation should not include any form that payment is to be obtained by claiming reimbursement as this structure is a credit available for payment.
Even so, why negotiating bank should come back for recourse towards beneficiary. Is the beneficiary obligation to claim reimbursement from issuing bank/third bank? I think the negotiating bank should admit its fault.
regards

Posted: **Tue Nov 11, 2008 8:37 am**

Tks for your comment here.
But the very fact in china is that before negotiation, the beneficiary and the negotiating bank will sign an agreement, in which contains the clause----the negotiating bank has the right of recource if he fails to claim reimbursement from the issuing bank.
I just can reckon that it is out of the scope of UCP.

Regards

Ofei

Best Trade Solution

Is Negotiation Equals To Bill Purchase?

Is Negotiation Equals To Bill Purchase?

Re: the right of recourse by negotiating bank

Re: the right of recourse by negotiating bank