| Negotiate the standard procedure is that the bank | | | | types of negotiations by banks around the world |
| takes control of the documents containing and give | | | | practiced. They are: |
| value to the seller. The issuing bank may at its | | | | 1. Negotiating without recourse |
| discretion, the LC available by negotiation with a | | | | 2. Negotiations with recourse |
| nominated bank or they may allow, the LC freely | | | | 3. Negotiating a fee |
| negotiated with any bank. In the first case the | | | | 4.Subject to negotiation |
| recipient is that the seller is, the documents only to | | | | A seller can present their documents under LC drawn |
| the bank, which is the nominated bank so far. Yet, | | | | directly either:a) The issuing bank (Bank, the LC) orb) |
| the nominees> Bank is obliged not obligated to | | | | The confirming bank (bank, added that the |
| negotiate if it does not require any separate | | | | confirmation at the request of the issuing bank), orc) |
| payment to the seller. | | | | To his own bank. |
| The nominated bank can simply refuse to negotiate | | | | If the seller decides which documents either directly |
| the documents drawn under the LC. This is because, | | | | to the issuing bank or confirming bank to present to |
| by appointment by the issuing bank, it does not, and | | | | make this payment without banksRECOURSE to him. |
| negotiate business. However, if the Bank has | | | | Meaning that the payment to the seller may be |
| received confirmation of her nomination to the LC at | | | | found to be claimable by these banks in case of |
| the request of the issuing bank, whereby companies | | | | documents, not to be paid after the payment in any |
| pay a special obligationto the seller, it has been their | | | | way. |
| commitment to pay for the documents under the LC | | | | These banks can not resort to the seller, as have |
| considered if they are in order. | | | | the issue or confirmation of the LC, they took upon |
| LC, which is not normally appoint any bank to | | | | himself the risk that the party is of the refund may |
| negotiate with a bank in the country of the seller is | | | | be obtained will be insolvent. |
| willing to negotiate the documents. There are 4 | | | | |