Interpreation Of UCP 600 - Article 7
Posted: Sun Sep 14, 2014 9:46 pm
Hi,
i was new to UCP and will take the CDCS exam soon. had gone through the UCP 600 and i had a lots of question and wish if someone could help me out. would appreciate if the answer may come with some examples for better understanding of the rules and application
Q1. I often see the words , "a credit is available by negotiation" ... from my own understanding, that would mean that the nominated bank can advance (loan) funds before the reimbursement from issuing bank (as per article 2) .. but on article 8 (a)(ii) state "negotiate , without rescourse, if the credit is available by NEGOTIATION with the conforming bank . so i am confused.. does it means the confirming bank has to advance the funds to nominated bank without resource when they want to add confirmation ?
Q2.Article 7(a)(ii) .. sight payment with a nominated bank and that nominated bank does not pay.
can i know the meaning of nominated bank does not pay ? does it means issuing bank are undertake to pay nominated bank while the nominated bank does not have obligation to pay beneficiary until it received funds from issuing bank ? or it means issuing bank are undertake to pay nominated bank even nominated bank DOES NOT PAY beneficiary ?
i was new to UCP and will take the CDCS exam soon. had gone through the UCP 600 and i had a lots of question and wish if someone could help me out. would appreciate if the answer may come with some examples for better understanding of the rules and application
Q1. I often see the words , "a credit is available by negotiation" ... from my own understanding, that would mean that the nominated bank can advance (loan) funds before the reimbursement from issuing bank (as per article 2) .. but on article 8 (a)(ii) state "negotiate , without rescourse, if the credit is available by NEGOTIATION with the conforming bank . so i am confused.. does it means the confirming bank has to advance the funds to nominated bank without resource when they want to add confirmation ?
Q2.Article 7(a)(ii) .. sight payment with a nominated bank and that nominated bank does not pay.
can i know the meaning of nominated bank does not pay ? does it means issuing bank are undertake to pay nominated bank while the nominated bank does not have obligation to pay beneficiary until it received funds from issuing bank ? or it means issuing bank are undertake to pay nominated bank even nominated bank DOES NOT PAY beneficiary ?