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Negotiation Is Known As A Risk Taking By The Nominated Bank
Posted: Mon Jul 07, 2008 11:12 pm
by shahriar
someone please help me on the issue. apart from ucp, among the experts, negotiation is known as a risk taking by the nominated bank and that what makes negotiation different from the discounting. now if a deferred payment under taking from the issuing bank is purchased by the nominated bank, then there is no risk. so is it a negotiation?
regd
shahriar
Re: risk and negotiation
Posted: Thu Jul 10, 2008 1:27 pm
by nesarul
Dear,
hope fine,
I have thought on your posting from the date of he same.
Here i want to analysis in where the application of negotiation has been incorporated. I found the following:
1. Negotiable instrument act
2. UCP
3. ISP
4. UCC.
apart from UCP [according to your posting], i think look into the uses and types of negoitiation on above rule and its distinction with DPU will provide an idea. isn't it?
regards
nesar
Re: risk and negotiation
Posted: Fri Jul 11, 2008 3:03 pm
by Md.zakir Hossen
Dear Shariar
"deferred payment under taking from the issuing bank is purchased by the nominated bank" I think does not constitute Negotiation.Though some risk also included in deferred payment undertaking.
definition of negotiation
Posted: Fri Jul 11, 2008 5:36 pm
by shahriar
but definition of negotiation includes prepay or purchase before maturity by the nominated bank!!!
regd
shahriar