A bank to which a check is sent for payment or collection. In a Letter of Credit transaction, the paying bank is the bank that will make the payment to the exporter (seller). This is usually the bank that is appointed as the drawee bank in the Letter of Credit.
the bank on which a cheque is drawn.
Means (1) the bank by which a check is payable, unless the check is payable at another bank and is sent to the other bank for payment or collection; (2) the bank at which a check is payable and to which it is sent for payment or collection; (3) the Federal Reserve Bank or Federal Home Loan Bank by which a check is payable; (4) the bank through which a check is payable and to which it is sent for payment or collection, if the check is not payable by a bank; or (5) the state or unit of general local government on which a check is drawn and to which it is sent for payment or collection. For purposes of Check 21 a “paying bank†also includes the Treasury of the United States or the United States Postal Service for a check that is payable by that entity and that is sent to that entity for payment or collection.
The bank maintaining the payer's account.
The bank specifically nominated in the letter of credit to which documents (and sight bill of exchange (draft) if called for) must be presented for payment.
The term used to describe the bank that is paying or honouring a payment on behalf of themselves (draft) or one of their customers. For example, if you issue a cheque to pay someone, this is an instruction to the bank to debit your account in favour of the other party (payee). Your cheque will be paid in by the payee and presented for payment through the clearing system. Your bank will usually pay the cheque, i.e., the paying bank. Note the bank could also return the cheque unpaid. It can also be the bank which is to pay under a documentary credit. It can be the issuing bank itself (i.e. The Bank that opened the documentary credit at the request of its customer, the applicant) or a bank nominated by the issuing bank, usually the advising bank (i.e. The Bank through which the issuing bank advised the letter of credit).
The bank that makes payment to the beneficiary of a payment DC after presentation to it of documents stipulated in the DC.
In a letter of credit, bank that is nominated to make payment to the beneficiary upon presentation of complying documents.
A letter of credit term denoting the person in whose favor a draft is drawn.
The bank which is to effect payment under the documentary credit. It can be the issuing bank itself or nominated bank, usually the advising or confirming bank.
The bank maintaining the payers account 91
