Letter of Credit Forum

yes negotiating bank approval basis.

The negotiating bank sends documents under and advised letter of credit to the issuing bank on approval basis.

regards,

phe9oxis,

http://www.guidebuddha.com

Having released the documents on approval, the "negotiating" bank is no longer in a position to "negotiate" the presentation under the provisions of Art. 14 of UCP, nor is able to comply under provisions of Art. 15.

Each representation should be considered anew, and without the other documents the negotiating bank in this case would find it difficult to assert to the issuing bank that the presentation complies by examining the document in isolation to the other documents. 

Any payment that the negotiating bank wishes to make to the beneficiary would be governed by a private arrangement between it and the beneficiary, and not covered under UCP. 

The most that the bank can do as has been suggested, is to forward the document to the issuing bank and await payment authority

Sheena,

The issuing bank will raise and quote some discrepancies found after the negociation, so if the Applicant accepts these discrepancies the issuing bank can pay the Beneficiary's Bank, Also to avoid less discrepancies charges the Beneficiary can send a revised documents to the issuing bankthru his bank.

Otherwise, if the discrepancies are calling for a regulatory issue (as per the issuing bank's local regulation) hence the Beneficiary should send a revised/required documents (thru his bank of course) allowing to the issuing bank to effect the settlment.

Hope your queries are clarified.

Regards,

Nounet.