physical acceptance of bills of exchange

PGauntlett · Post by **PGauntlett** » Thu Feb 15, 2001 12:00 am

For survey purposes is it general practice of confirming banks to physically accept bills of exchange drawn on them or to simply leave the b/e attached to the file?

AbdulkaderBazara · Post by **AbdulkaderBazara** » Fri Feb 16, 2001 12:00 am

For security reasons, I would go for not physically accepting the draft unless beneficiary requested return of the draft duly accepted.

vobrien · Post by **vobrien** » Thu Apr 12, 2001 1:00 am

I can 'ACCEPT' the previous comment.

However, my practice is to physically accept the drafts which are retained in a high security cabinet and balanced with bank obligations on bank records.

Vincent
vob@obrico.com

T.O.Lee · Post by **T.O.Lee** » Wed May 23, 2001 1:00 am

As LC operation cost is already very high, it makes business sense to keep the accepted drafts in the hands of the accepting/drawee bank. There is no need to send the accepted drafts like a yo-yo. This also incurs risk of loss in transit. This is also a "green" process, to save energy which can be more effectively used elsewhere.

I am from www.tolee.com

[edited 12/15/01 9:27:28 PM]

laukinpongdave · Post by **laukinpongdave** » Sun Jun 03, 2001 1:00 am

this consideration is case by case. if the documents presented to confirming bank with discrepancies, they will not accepted the drafts and send documents to issuing bank for approval and acceptance as the confirming bank performs their liability only if the documents presented is complied with the terms and conditions of D/C. in this case, they will physically accepted the drafts drawn on them if they received an authenticaetd message for waiver of discrepancies by issuing bank.

in general, the confirming bank will keep the drafts in their record only