Available with a Nominated Bank by Acceptance or Deferred Payment: Is the Nominated Bank Obliged to Act? One of the most common misconceptions in documentary credit practice is that once an issuing bank nominates a bank to accept drafts or incur a deferred payment undertaking, that nominated bank is automatically obliged to perform that role. A reader recently raised an interesting question regarding credits available with a nominated bank by acceptance and by deferred payment. The answer … Read More
Nominated But Not Obligated: What UCP 600 Really Expects from Nominated Banks In the world of Letters of Credit, being nominated doesn’t always mean being obligated. This subtle—but crucial—distinction lies at the heart of how UCP 600 treats the role of the nominated bank. A recent question raised by ICC-certified expert Domenico Del Sorbo highlights this exact nuance: Why doesn’t UCP 600 impose an obligation on a nominated bank—not acting on its … Read More
WHERE THE NOMINATED BANK DOES NOT NEGOTIATE THE DOCUMENTS QUESTION Hi Mr. Old Man, I feel confused with the following case: We as advising bank received a letter of credit available with any bank by negotiation and advised the same to the beneficiary. After shipment the beneficiary presented the documents to our bank and we forwarded the documents to the issuing bank without negotiation. I understand that in this … Read More