Page 1 of 1
Draft Should Drawn On Issuing Bank Or Advising Bank
Posted: Fri Dec 18, 2015 11:31 am
by Chaitu22
In confirmed/unconfirmed LC states field 42A drawn on advising bank,but draft is drawn on issuing bank.shall we consider this as discrepancy in both cases.
Answer.
Posted: Thu Dec 24, 2015 1:22 pm
by gegeeee
Please clarify, How the original LC was issued? Which payment term was used? and to whom it was available?
Posted: Fri Dec 25, 2015 10:58 am
by Chaitu22
Available with advising bank,tenor is usan ce.
Answer
Posted: Fri Dec 25, 2015 4:45 pm
by gegeeee
If the credit is available with advising Bank it means that, advising bank = nominated bank.
If credit is available with Nom.Bank by negotiation, draft should be drawn on issuing bank. (Refer article 2, UCP 600)
If credit is available with Nom.Bank by acceptance draft should be drawn on that nominated bank.
Credit can not be available with issuing bank by negotiation. (Refer article 7 i.)
hope it helps
Question
Posted: Fri Jan 15, 2016 1:37 am
by Dvma
Ok what if my issuing bank always usinng availability of the is by negotation for(sight + acceptance) regardless the confirmation, moreover they are using this clause for accptance LC "subject to benenficiary request you may add your confirmation and draft to be drawn on the advising and field 41a to read as by acceptance can i know why they are doing such thing?