Uncategorized WHETHER DRAFT IS TO BE DRAWN ON ISSUING BANK OR CONFIRMING BANK By Mr Old Man Posted on March 6, 2010 1 min read 1 0 6,506 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUERY FROM DMSHETTY We had issued an Import Lc available by negotiation, authorising the advising Bank to add their confirmation and the Draft to be drawn on Confirming Bank. The advising Bank agreed to Confirm the Lc but wanted the draft to be drawn on us (i.e. Issuing Bank). Whether the advising Bank's request is in order? ————————- COMMENT N.H.DUC – Viet Nam Hi, It is true that under confirmed L/Cs drafts are normally drawn on the confirming bank. Yet, this does not mean that drafts drawn on the issuing bank is impossible. If the sight draft is drawn on the confirming bank and the documents presented constitutes a complying presentation, the confirming bank must pay at sight (not negotiate). If the sight draft is drawn on the issuing bank and the documents presented to the confirming bank constitutes a complying presentation, the confirming bank must negotiate without recourse. Best regards,N.H.Duc …
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?