"An issuing bank should not require a sight draft to be drawn on the reimbursing bank

[isifan]

DEAR ALL:
URR STATE
1-"“Reimbursement authorization” means an instruction or authorization,
independent of the credit, issued by an issuing bank to a reimbursing bank to
reimburse a claiming bank OR, if so requested by the issuing bank, (((((to accept
and pay a time draft drawn on the reimbursing bank))))))."
.
2-"An issuing bank should not require a sight draft to be drawn on the reimbursing
bank."
.
WHY(An issuing bank should not require((( a sight)))) draft to be drawn on the reimbursing
bank?


KIND REGARDS

[picant]

Hi Pal,

in many Countries a stamp duty is applicable to Draft or Bill of exchange, so it is better to avoid
these documents. A nominated bank may use a proper Swift message and if not permitted send a
letter claiming reimbursement.
Other comments appreciated.
Ciao

[quang]

Mr Gary collyer said that: Calling for a sight draft to be sent to the reimbursing bank encourages claims by courier or post when SWIFT claims should be the normal practice and the sending of drafts creates unnecessary delays in the settlement process