Negotiation & Drafts

melissachin · Post by **melissachin** » Thu Aug 09, 2001 1:00 am

I received a freely available negotiation credit on sight basis from a Japanese bank.
The credit did not call for drafts , no drawee was given but a reimbursing bank in New York was mentioned. Credit required all documents to be sent to the issuing bank in Japan.

I would like to enquire if it is necessary for

1)the beneficiary to draw drafts? If so, should it be drawn on the issuing bank or the reimbursing bank?
Where do we send the drafts to?

2)Should we as negotiating bank draw a separate set of drafts on the reimbursing bank when we submit our reimbursement claim assuming the beneficiary's drafts are drawn on the issuing bank?

Thank you.

larryBacon · Post by **larryBacon** » Fri Aug 10, 2001 1:00 am

Why do you seek drafts if the L/C does not ?

If drafts are submitted by the beneficiary, these should be considered as additional to the requirements of the L/C & ignored.

ramisalha · Post by **ramisalha** » Sat Aug 11, 2001 1:00 am

i agree with the above opinion, also, when drafts are needed in Ls/C they shoud not be drawn on reimbursing banks unless they are confirming banks too