Restricted Negotiations of Lc docs.
Posted: Tue Jul 01, 2014 8:32 pm
What are the benefits of restricted negotiation of Document for beneficiary under LC?
there can be several reason for the issuing bank to restrict the lc to negotiating bank
but the main reason, in my opinion, is that the issuing bank wants to be sure that the documents will be examined and negotiated by the bank which is known to the issuing bank (in terms of expertise, reputation, service etc.), and eliminates the risk that the seller will present the documents for negotiation to the bank with which the issuing bank never worked before.