the to order party on the bl - to nego bank endorsed to iss

lucettelessard · Post by **lucettelessard** » Wed Nov 07, 2001 12:00 am

What are the legal implications when a bill of lading is consigned to order of the negotiating bank and then endorsed over to the issuing bank. My question becomes more pertinent when the credit states that it is available with the issuing bank by payment yet the bill of lading requires the above. What is the purpose of consigning the document to the "negotiating" bank and then having it endorsed to order of the issuing bank? Would this be a law in some countries?

hatemshehab · Post by **hatemshehab** » Thu Nov 08, 2001 12:00 am

I would suggest that you pay a visit to the website of Mr. T.O. LEE he has addressed this issued in a very enlightening manner. You can find an article on this issue under the following heading

What “To Order” And “Blank Endorsed” Actually Mean.

His website is www.tolee.com

larryBacon · Post by **larryBacon** » Thu Nov 22, 2001 12:00 am

This may be a reasonable approach if the negotiating bank has confirmed the L/C & therefore drafts are drawn on this bank.

VinodR · Post by **VinodR** » Thu Nov 22, 2001 12:00 am

I understand that in Indonesia it is a requirement that the BL be consigned to the order of the negotiating bank.The requirement of the law seems to be a likely reason for having such a stipulation.
regards
Khalid Iftikhar