WHAT DOES SIGHT MEAN?

QUERY FROM WARLORD

Hi all,

Am new in LC world and to this forum, i luv this job:P, as lot of stuff encounters me every day.
I have simple question, nobody answers me straight away in my bank for the meaning of SIGHT.
Does it mean, Sight by Issuing Bank, Sight of Beneficiary's Bank, or what?

In addition, what do we consider of the receiveing date of documents and the 5 working days works, is it of our post office stamp of receipt or our LC department receipt.

Thanks

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ANSWER FROM MR. OLD MAN
What does "sight" mean?

Hi,

1) “Sight” is the term used in relation to a bill of exchange. It means the time the bill is first seen by the drawee, i.e. the party responsible for paying it. The drawee may be the issuing bank or a confirming bank up to the case.

It is commonly understood that a sight bill is the bill payable at sight, i.e right at the time the bill first seen by the drawee. However, in LC transaction, the issuing bank or the confirming bank each has a maximum of five banking days following the day of presentation to determine if a presentation is complying. If the documents are complying, the issuing bank/confirming bank shall pay the bill. So, in this case “sight” does not always mean right at the time the bill first seen but may be some days later.

2) The day the presentation is made to your bank’s counter.

Best regards,
Nguyen Huu Duc …