I would like to hear fr yr members as to whether it is their banks' policy to get their
customers/beneficiaries who present documents for negotiation to sign trade or security agreements
to enable the negotiating banks to exercise recourse in case of dishonored bills.
my bank does not have one but some banks do ask for one.
Need for a trade agreement
-
angelinerobert
- Posts: 1
- Joined: Fri Apr 05, 2019 5:15 pm
Need for a trade agreement
We do not.
Without responsibility/liability, I personally would have thought that notice to the beneficiary in the credit advice letter that any negotiation would be with recourse, and perhaps setting out when that recourse would be exercised, would be sufficient. However, where a bank wanted to be absolutely certain I could see it might be prudent to have some form of written agreement with the beneficiary clearly setting out all the negotiating bank’s rights, e.g. its right to debit the beneficiary’s account where the beneficiary is an a/c holding customer.
In return for having responded to your query, I would be most grateful if you could kindly reciprocate by responding to my own regarding URC- STORAGE AND INSURANCE. Many thanks.
Without responsibility/liability, I personally would have thought that notice to the beneficiary in the credit advice letter that any negotiation would be with recourse, and perhaps setting out when that recourse would be exercised, would be sufficient. However, where a bank wanted to be absolutely certain I could see it might be prudent to have some form of written agreement with the beneficiary clearly setting out all the negotiating bank’s rights, e.g. its right to debit the beneficiary’s account where the beneficiary is an a/c holding customer.
In return for having responded to your query, I would be most grateful if you could kindly reciprocate by responding to my own regarding URC- STORAGE AND INSURANCE. Many thanks.