Articles by Month
Back to Basics – Documentary Credit – Document Negotiation & Financing
Definition: 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...
Back to Basics – Documentary Credit – Document Examination
A document examiner will usually undertake a number of preliminary checks:
Has the documentary credit expired?
Have previous drawings under the documentary credit, if any, been recorded?
Is the available balance sufficient for the current drawing?
Are all the amendments available?
Banks should always physically record the results of the examination process, either in paper format or electronically...
Back to Basics – Documentary Credit – Document Presentation
A covering schedule that accompanies the documents should include a reference number and contact details of the presenter in the event of any problems...
Back to Basics – Documentary Credit Transfer & Assignment
A transferable documentary credit, as defined in UCP 600 sub-article 38 (b), is a credit that specifically states it is transferable, thereby allowing for it to be made available in whole or in part to one or more other beneficiaries (each to be known as a second beneficiary), at the request of the beneficiary (who will become known as the first beneficiary)...