A Letter of Credit Negotiation (NG) Bill comprises a set of documents submitted by the beneficiary or the Presenting Bank (if the beneficiary is another Bank's customer) to the Bank for negotiation against a LC which may or may not be advised by the Bank.
This involves the bank checking the documents for compliance with the terms and conditions of the LC, handling and resolution of discrepancies and obtaining reimbursement. These bills may be treated as Export LC Bills Purchased (PNG) where the Banks will advance the bill amount negotiated to the beneficiary, or a Collection Bill (NG) is payment made to the beneficiary upon receipt of funds from the Issuing/Reimbursement Bank. Negotiation is done with recourse to the beneficiary unless the Bank confirms the LC or accepts the usance bill of exchange as a drawee.
Important Notice: UCP 600
For Export Letter of Credit, the handling will be subject to the version of the UCP which is stated in the Export Letter of Credit.
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