Quoting from [freelogix]:

Quoting from [Catalyst]:



Replying to [spider man]:



This article is to allow for discount of deferred payment undertakings. UCP 500 did not have that provision.



To answer your question: The nominated bank first accepts. It may then discount and pay the beneficiary (and refinance itself) if it chooses to. Or it may not.



On maturity date, it honours/pays beneficiary- if it hasn't discounted already, or pays itself, if it has.



Once it accepts, it must pay/honour on due date. Such payment is withour recourse. (The issuing bank continues to be liable, anyway, under Article 7).

Catalyst,

Can you please let me know the name of your book and where it can be purchased?

I have written three books till now. They are (1) An Introduction to Documentary Credits (2007), (2) Fundamentals of International Banking (2008), and (3) All About UCP 600. he last one was published last month. The publisher is Macmillan India Ltd.

You can purchase any of the books on-line from macmillanindia.com.