Definition of Negotiation
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Trang
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Definition of Negotiation
Pls explain, under the definition of negotiation, "on or before the banking day on which reimbursement is due to the nominated bank".
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murttuza
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Def of Negotiation , by SM
Negotiation:
The purchase by the nominated bank of drafts (drawn on a bank other
than the nominated bank) and/or documents under a complying
presentation, by advancing or agreeing to advance funds to the
beneficiary on or before the banking day on which reimbursement is
due to the nominated bank.
The definition emphasizes that negotiation relates to the purchase of a
draft drawn on a bank other than the nominated bank. If it was drawn
on the nominated bank, it would be a payment or acceptance credit.
Further, negotiation is either the advancing or agreeing to advance
funds to a beneficiary. Use of agreeing to advance allows the bank
and beneficiary to determine the terms under which negotiation will
occur. These terms would include when, for how much and whether or
not the advance is with or without recourse.
The purchase by the nominated bank of drafts (drawn on a bank other
than the nominated bank) and/or documents under a complying
presentation, by advancing or agreeing to advance funds to the
beneficiary on or before the banking day on which reimbursement is
due to the nominated bank.
The definition emphasizes that negotiation relates to the purchase of a
draft drawn on a bank other than the nominated bank. If it was drawn
on the nominated bank, it would be a payment or acceptance credit.
Further, negotiation is either the advancing or agreeing to advance
funds to a beneficiary. Use of agreeing to advance allows the bank
and beneficiary to determine the terms under which negotiation will
occur. These terms would include when, for how much and whether or
not the advance is with or without recourse.