Date on Sight Draft ...

MOHAMMEDMUJEEB · Post by **MOHAMMEDMUJEEB** » Wed Aug 19, 2009 1:00 am

Hi all,
I have seen ICC Opinion R.256, where in it says, sight draft need not be signed and endorse.
My question is as The draft required by the issuing bank under documentary credit is sought solely for the purposes of being the formal claim, by the beneficiary, against the drawee.

If there is no draft than how can beneficiary get the fund.
[edited 8/19/2009 3:32:14 PM]

NigelHolt · Post by **NigelHolt** » Wed Aug 19, 2009 1:00 am

I do not think the position is absolutely clear and think the answer may well be the result of the law applicable to the credit etc.

GlennRansier_ · Post by **GlennRansier_** » Wed Aug 19, 2009 1:00 am

LC's deal with documents and not drafts. I understand that customs in India dictate that the "draft" is a formal document with which various rules and laws are attached but that is beyond the scope of a LC. A LC can be paid against any document presentation. In a LC, when a sight draft is required by the LC it is really nothing more than a demand for payment and the draft itself has no other legal significance in LC or UCP terms.

DonSmith · Post by **DonSmith** » Sat Aug 22, 2009 1:00 am

If a credit requires presentation of a draft, it IS a document to be examined under the credit - it is a 'special document' in my view as it typically represents the amount demanded for payment - remember article 18b.

Also - each ICC Opinion relates only to the specific facts given in the query and to the UCP effective for that transaction.

NigelHolt · Post by **NigelHolt** » Sun Aug 23, 2009 1:00 am

If I had to pick a camp, it would be Glenn's.