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Dear,
Why the word Discounting is not stipulated in UCP despite it uses frequently by L/C practitioner?
Regards
Nesar

Hi,
Probably discounting relates to only the beneficiary and beneficiary's banker.
Regards

i think discounting is a part of honor as the bank discounts its own liability. hence its not mentioned in UCP 600

Dear Nesar, I am a bit agreed with you, I think Disounting is a word which relates to Deffered/ Usance LCs, where a banker / financial organisation / a party offers a discounted value of the documents (and/ or draft) to the beneficiary (for making payment presently) by imposing a discount rate on the value of the documents (and/or draft)for the time value (like as by imposing / offering a 120 days usance rate for discounting documents relates to 120 deffered LC). As the definition of Honour in the Article 2 of UCP 600 includes Deffered Payment LC (Point b in the definition) or Acceptnce LC (c in the definition), we can say that Discounting is a concept which have a relationship with hohour, but can we say that it is a part of Honour as defined in UCP 600? I want to infer a deiffernt view point here, you see according to the definition of Honour: in option b and c you need to either make a "deferred payment undertaking" (for option b) or "to accept a billl of exchange / draft" (for option c) and make payment at maturity for both the cases, but in case of Discounting you are making payment presently (with discounted value for time factor).