UCP600_DCC_class 05 and 06 211012 - Article 12 Nomination a Unless a nominated bank is the confirming bank an authorization to honour or negotiate does

UCP600_DCC_class 05 and 06 211012 - Article 12 Nomination a...

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Article 12 Nomination a. Unless a nominated bank is the confirming bank, an authorization to honour or negotiate does not impose any obligation on that nominated bank to honour or negotiate, except when expressly agreed to by that nominated bank and so communicated to the beneficiary. b. By nominating a bank to accept a draft or incur a deferred payment undertaking, an issuing bank authorizes that nominated bank to prepay or purchase a draft accepted or a deferred payment undertaking incurred by that nominated bank. c. Receipt or examination and forwarding of documents by a nominated bank that is not a confirming bank does not make that nominated bank liable to honour or negotiate, nor does it constitute honour or negotiation. K. M. Lutfor Rahman CDCS Presentation
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Article 12 (a) Nomination Unless a nominated bank is the confirming bank, an authorization to honour or negotiate does not impose any obligation on that nominated bank to honour or negotiate, except when expressly agreed to by that nominated bank and so communicated to the beneficiary. K. M. Lutfor Rahman CDCS Presentation
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OBLIGATION OF A NOMINATED BANK Nominating a bank to honour or negotiate does not obligate that bank to receive or examine documents or to honor or negotiate EXCEPT when - The nominated bank is the Sub-article 12 (a) Explanation confirming bank OR - the nominated bank expressly communicates its agreement to honour or negotiate to the beneficiary. K. M. Lutfor Rahman CDCS Presentation
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IS A CONFIRMING BANK ALWAYS A NOMINATED BANK? ‘SUBJECT TO THE STRUCTURE OF THE DOCUMENTARY CREDIT, A CONFIRMING BANK MAY NOT BE A NOMINATED BANK .’ Sub-article 12 (a) Explanation UCP600 Drafting Group K. M. Lutfor Rahman CDCS Presentation
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Article 12 (b) Nomination By nominating a bank to accept a draft or incur a deferred payment undertaking, an issuing bank authorizes that nominated bank to prepay or purchase a draft accepted or a deferred payment undertaking incurred by that nominated bank . K. M. Lutfor Rahman CDCS Presentation
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AUTOMATIC AUTHORIZATION TO A NOMINATED BANK ° A nominated bank is automatically authorized to prepay or purchase a draft accepted by it (when a credit is available by acceptance with a nominated bank) . Sub-article 12 (b) Explanation ° A nominated bank is automatically authorized to prepay or purchase a deferred payment undertaking incurred by it (when a credit is available by deferred payment with a nominated bank) . K. M. Lutfor Rahman CDCS Presentation
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UCP600 DRAFTING GROUP’S COMMENT ‘The sub-article 12 (b) recognizes the independent, absolute and unconditional nature of a nominated bank’s obligation under its own accepted draft or incurred Sub-article 12 (b) Explanation deferred payment undertaking. UCP600 Drafting Group K. M. Lutfor Rahman CDCS Presentation
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UCP600 DRAFTING GROUP’S COMMENT ‘The sub-article 12 (b) provides for discount authorization simply by the issuing bank nominating a bank to accept a draft or incur a deferred payment undertaking. A bank nominated to negotiate is, by the definition of
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  • Summer '19
  • Basic financial concepts, Trade finance, Uniform Code of Military Justice, K. M. Lutfor Rahman, Rahman CDCS

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