Intro: When documentary collections involve terms like co-acceptance or avalization, collecting banks can find themselves on the hook — often without fully realizing the implications. Two related questions from SAR highlight a common confusion: What happens when a bank co-accepts a bill? And in cases of avalization, who should the bill be drawn on? In this Q&A, Mr. Old Man …

QUESTION Dear Mr. Old Man I have been visiting your blog frequently ever since I came to know about the blog and am very thankful to you for sharing your knowledge with others. Am herewith a question today with respect to bill of exchange incase of avalization. – Client presented document with covering letter stating “documents to be released against …