Article 2 Vs Article 12 of UCP600
Posted: Wed Mar 22, 2017 9:31 pm
Dear Experts,
Confirmed LC -Without recourse
Draft - I am clear.
What is the difference(other than above) between both these clauses while they suggest payment before maturity to the presenter. Reason for having 2 difference clauses
ARTICLE 2
Definitions
Negotiation means 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
ARTICLE 12
Nomination
b. By nominating a bank to accept a draft or incur a deferred payment undertaking,
an issuing bank authorizes that nominated bank to prepay or purchase a draft
accepted or a deferred payment undertaking incurred by that nominated bank.
Regards
Dinesh
Confirmed LC -Without recourse
Draft - I am clear.
What is the difference(other than above) between both these clauses while they suggest payment before maturity to the presenter. Reason for having 2 difference clauses
ARTICLE 2
Definitions
Negotiation means 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
ARTICLE 12
Nomination
b. By nominating a bank to accept a draft or incur a deferred payment undertaking,
an issuing bank authorizes that nominated bank to prepay or purchase a draft
accepted or a deferred payment undertaking incurred by that nominated bank.
Regards
Dinesh