DRAFT ENDORSEMENT

2 Comments

1. 

   Crazy Cricketer

   December 30, 2016 at 1:27 am

   Dear Mr. Old Man,

   A) Is it that Draft always to be drawn on the bank which is mentioned in field Field:42C irrespective of where the beneficiary present the docs.?

   B) My understanding on “credit available by negotiation” is that nominated/confirming will bargain as much as they could with the beneficiary. If credit is restrictedly available, beneficiary has no other option to negotiate, so that, the particular negotiating bank can discount what ever amount they wish from proceedings.

   Is my understanding correct?

   Thanks.

   Reply

• 

  mroldman

  December 30, 2016 at 11:05 am

  Hi,

  1) Unless being one of the documents required under field 46A, draft is always drawn on the issuing bank or a nominated bank.

  2) Where L/C is available with any bank by negotiation, the beneficiary should present the documents to any bank for negotiation.
  Where L/C is available restrictly with a named nominated bank, the beneficiary should present the documents to that bank for negotiation.
  Where L/C is available with a nominated bank, the beneficiary may also present the documents directly to the issuing bank for payment.
  Where L/C is available restrictly with a named nominated bank, the beneficiary may present the documents to a non-nominated bank for negotiation (if that bank agrees to negotiate on a with or without recourse basis). However, please note that the non-nominated bank may negotiate the documents at its own discretion and risk as it is not authorized to negotiate the documents.

  Kind regards,
  Mr. Old Man

  Reply