agreeing to advance funds?

Ozoda · Post by **Ozoda** » Tue Mar 17, 2009 12:57 am

Dear All,

I have a question related to definition of negotiation. (article 2 of UCP 600).
What does the words " AGREEING TO ADVANCE FUNDS TO THE BENEFICIARY..." MEANS?

Thank you in advance!

shahriar · Post by **shahriar** » Tue Mar 17, 2009 8:15 pm

agreeing to advance fund, as mentioned in UCP 600, mean that there may be situations where the beneficiary is not looking for immediate negotiation or fund. in that case the bank may commit that beneficiary to negotiate that credit on some future date. in simple word, its a commitment to negotiate on some future date. whether this commitment is irrevocable or not depends on whether the concerned nominated bank is a confirming bank or not. if the bank is a confirming bank, then agreeing to advance fund is an irrevocable undertaking

Ozoda · Post by **Ozoda** » Mon Mar 23, 2009 8:57 pm

I see. Thank's a lot.
If the bank is a confiming bank then negotiation will be without recourse.
And if the nominated bank is not a confirming bank then negotiation will be with recourse...