Mr Old Man Payment Q&A Endorsement Requirements for Drafts payable to the Beneficiary By Mr Old Man Posted on 7 seconds ago 1 min read 0 0 0 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Hello Mr Old Man, I hope you are well! I have a question regarding endorsement. LC is available by negotiation, we are the exporting bank, drawee is the issuing bank and the draft is been presented by the beneficiary as to the order of theirselves(to the order of beneficiary). So, is there necessary to endorse the draft to the order of issuing bank by us when we sent the documents to the issuing bank? Regards Fatih Erkul ———– ANSWER Hi, If the draft is made payable to the order of the beneficiary, then the beneficiary must first endorse it to the order of your bank as the negotiating/presenting bank. Your bank should then endorse the draft further—either to the order of the issuing bank or by blank endorsement—depending on standard practice or specific requirements. This ensures the draft can be properly transferred to the issuing bank for payment. Best regards Mr. Old Man