A bank which is party to a Letter of Credit and which agrees to buy or sell Bills of Exchange or shipping documents.
A bank which negotiates a draft drawn under a letter of credit, provided the credit permits negotiation of drafts. Usually the negotiating bank is an unnamed bank that under the terms and conditions of the letter of credit is permitted, at its discretion, to advance funds to the beneficiary against the required documents.
Refers to any bank accepting the documents of a LC beneficiary and giving in exchange a value for those documents. In simple terms, the negotiating bank purchases (i.e. takes up) the letter of credit from the LC beneficiary, paying him either at a discount from the face valve of the documents or against a fees.
Bank to which letter of credit documents are presented by the beneficiary for collection of payment. The name derives from the fact that the negotiating bank is normally authorized by the issuing bank to negotiate documents ( see " negotiate"), but it may or may not choose actually to do so. Furthermore, recognizing that this bank may be authorized to pay or accept drafts, rather than negotiate them, UCP500 now uses the term "nominated bank" rather than "negotiating bank." Unless otherwise instructed, negotiating banks in North America generally examine the documents for discrepancies before forwarding them to the issuing bank, but this is properly viewed as a service separate from negotiating and is not even necessary when negotiating with recourse.
The bank specifically nominated in the letter of credit to purchase the bill of exchange (draft) drawn by the beneficiary on a drawee other than the negotiating bank. (If a letter of credit is freely negotiable, any bank willing to do so can be the negotiating bank).
The bank which negotiates a presentation under a documentary credit. It may be a bank nominated by the issuing bank or any other bank authorised under the credit. Usually located in the country of the seller.
A bank assigned in a letter of credit to give value to the beneficiary against presentation of documents.
The bank that under a Documentary Letter of Credit negotiates the Bill of Exchange and/or documents.
Bank nominated on a letter of credit to negotiate the bill of exchange, i.e. check the documents, pay the seller and seek reimbursement from the issuing bank.
A letter of credit term referring to a bank (other than the issuing bank) that has negotiated documents under a letter of credit. See "Negotiation."
In a letter of credit, the bank which accepts the documents for examination and, if these are found in order, credits the due amount to the beneficiary. Français: Banque négociatrice Español: Banco negociador
A bank named in the credit; examines the documents and certifies to the issuing bank that the terms are complied with.