AVALIZATION UNDER DOCUMENTARY COLLECTIONS A 16-Year-Old Debate That Remains Relevant Today Mr. Old Man recently revisited an interesting discussion that took place more than 16 years ago on the DCI Discussion Forum regarding avalization under documentary collections. The discussion began with a question raised by Svishu from Kuwait and attracted comments from several respected trade finance practitioners, including Daniel D (Switzerland), Jim Barnes (United … Read More
Can the Drawee’s Bank Cancel Its Aval after Confirming it by SWIFT? A Q&A with Mr. Old Man When dealing with documentary collections, many bankers assume that an aval—once issued—is as solid as steel. But what happens when an avaling bank suddenly cancels its commitment, cites problems with the underlying goods, and even goes to court? In this Q&A, Mr. Old Man breaks down how avalization really works, which rules govern it, … Read More