negotiating bank pay to beneficiary with or without recourse

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
akomolpa
Posts: 54
Joined: Thu Mar 12, 2009 5:04 pm

negotiating bank pay to beneficiary with or without recourse

Post by akomolpa » Thu Mar 12, 2009 5:16 pm

Can Negotiating bank recourse to beneficiary if issuing bank refuse to pay against discrepancy?

haribargava
Posts: 36
Joined: Thu Mar 12, 2009 5:34 pm

Yes NB can pay with recourse

Post by haribargava » Thu Mar 12, 2009 6:19 pm

Hi ,

Yes recourse it is possible in case of negotiation unless the nominated bank is a confirming bank, it can pay bene with recourse


Rgds

User avatar
shahriar
Posts: 923
Joined: Fri May 16, 2008 1:03 am
First Name: Shahriar
Last Name: Masum
Organization: Mutual Trust Bank
Filter: Two Plus Two =: 4
Location: Bangladesh

negotiation with recourse

Post by shahriar » Fri Mar 13, 2009 8:13 pm

while UCP 600 does not directly address the issue of negotiation with recourse, one can get the idea from article 8 where a confirming bank is required to negotiate without recourse. however i think it has become a ISBP that negotiation by a nominated bank which is not a confirming bank is always with recourse.

Post Reply