QUESTION What is the difference between discounting and negotiation? Please clarify. MK ———– ANSWER Hi, With regard to the purchase of drafts and/or documents presented under LCs, UCP 600 does not use the term “discounting” but the term “negotiation” which means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents, …

QUESTION We, as issuing bank, issues a transferable letter of credit available with any bank by negotiation and Bank A is nominated as transferring bank. The credit does not contain a clause like “Unit price, amount and/or second Ben’s information are prohibited to be indicated on documents except invoice and draft.” We are advised by the transferring bank that credit was transferred …

One of  the most dangerous elbow-shaped slopes of Hai Van Pass.  QUESTION Dear Mr Old Man, I’d like to ask you a question relating to the 05 banking days after presentation day a bank has to determine if the presentation is complying. The issuing bank decides its a complying presentation and agrees to release the docs to applicant on 1st day while holding …

Taking wedding photo by Sword Lake, Hanoi QUESTION Dear Mr. Old Man, We need your expert opinion in the following case: We received one documents for collection from Bank A with the condition “90 days D/A co-accepted by bank”. Our bank sent MT499 to Bank A indicated “the documents have been co-accepted by us and we will make payment on …

QUESTION Dear Mr. Old Man, I have a question: L/C calls for port to port BL stating port of loading and port of discharge. Presented BL showing required ports but also place of final destination not called for under LC. Is it a discrepancy? Any ICC opinion about this? Thank you in advance for your valuable reply. Shirki ——– ANSWER …

QUESTION Dear Mr Old Man, We would appreciate your comment to the following questions: Question 1: LC requires in F 46A: Full set less one original of bill of lading… Does it comply with the LC requirement if the beneficiary presents two original bills of lading? Question 2: LC issued by Bank I states in Field 78 that the negotiating …

QUESTION Dear Mr. Old Man, As far as I know there are only two types of collection: D/P (Documents Against Payment) and D/A (Documents Against Acceptance). However, I’ve just heard about a strange collection: D/P at xxx days after BL date. Please let me know if there is such a strange collection. If there is, what is the difference between …

QUESTION In response to a query at http://letterofcreditforum.com/content/i-need-some-clarification-regards-lc, you wrote: “Different from LC available by payment, LC available by negotiation allows the beneficiary to receive the payment by negotiating the sight drafts and documents at a nominated negotiating bank which is normally located in his country. The negotiation may be effected on a with or without recourse basis”. I do …