L/C IS AVAILABLE BY NEGOTIATION AT SIGHT AT NOMINATED BANK. IN ADDITION NOMINATED BANK IS REQUESTED TO CONFIRM THIS L/C.
UPON RECEIPT OF CREDIT CONFORM DOCUMENTS CONFIRMING BANK IS AUTHORIZED TO REIMBURSE ITSELF.
NEGOTIATION/CONFIRMING BANK HAS TO INFORM ISSUING BANK ABOUT DETALS OF NEGOTIATION.
WHAT DO YOU THINK IS THE MAIN DIFFERENCE TO ISSUE THE L/C AVAILABLE AT SIGHT BY NEGOTIATION RESPECT. BY PAYMENT WITH CONFIRMING BANK ?
WOULD YOU CONFIRM A L/C AVAILABE WITH YOURSELVES AT SIGHT BY NEGOTIATION OR WOULD INSIST AN AMENDMENT AVAILABLITY BY PAYMENT (IN CASE YOU DO NOT NEGOTIATE) ?
MANY THANKS FOR YOUR RESPONSES.
AVAILABLE BY NEGOTIATION WITH CONFIRMING BANK
AVAILABLE BY NEGOTIATION WITH CONFIRMING BANK
1.If a documentary is available by payment, the confirming bank will expect a reimbursement clause. It is not so with a credit available by negotiation. See Commentary and opinion TA 569, we are back to the good old times with their true letters of credit.
2. Before confirming anything, I would make sure that the credit clearly specify that it is available by payment or by negotiation.
Regards
Daniel
2. Before confirming anything, I would make sure that the credit clearly specify that it is available by payment or by negotiation.
Regards
Daniel