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Greetings All

on a MT700 under field 41, kindly advise what do the following mean and what are the difference between these two :

By Negotiation
.
By Acceptance

Your comments will be greatly appreciated.

Dear,

payment by negotiation, the confirming bank would have to honour the complying presentation, i.e., pay at sight. If the credit requests a draft, it would be a sight draft made out on the confirming bank but in case of the available by acceptance, the confirming bank would have to honour the complying presentation, i.e., to accept a bill of exchange (draft) drawn by the beneficiary and pay at maturity. The confirming nominated bank is authorized to prepay or purchase a draft accepted by that nominated bank but it would be entitled to reimbursement only at its maturity

Regards,
Alaa

Thank you for your response Alaa

so what you are actually saying is ... "negotiation" would refer to a sight circumstance and "acceptance" would refer to a usance circumstance ?