Is the Nominated Bank Obligated to Negotiate Documents?

The word ‘available’ as used in LC operations, ranks high on the list of terms that confuse exporters. A letter of credit should clearly specify how it is available; by sight payment, deferred payment, acceptance or negotiation [article 6(b), UCP 600].

It is preferable for exporters that letter of credits be advised available with a local bank, or at least with a bank in the exporter’s own country. For instance, if the letter of credit is available at the counters of a local advising bank by sight payment, deferred payment, acceptance, where confirmation is added, then the exporter will, in the normal course of events, receive payment or have a bank acceptance or a deferred payment commitment a few days after presenting documents complying with the terms of the letter of credit. Such commitments are definitive and without recourse to the exporter. However, if a letter of credit is not confirmed, such advising bank may decide not to pay, accept or issue a deferred payment commitment at the time documents are presented, even if they are presented in order [article 12, UCP 600]. There can be many reasons for this, but the most common is that the advising bank where the letter of credit is available is not satisfied with the bank risk or country risk.

If on the other hand, the letter of credit was confirmed, such advising/confirming bank would have no option but to take up documents which comply with the terms and conditions of the LC and honor its commitment to the exporter.

Negotiation deserves a special mention. Negotiation is a term which regularly confuses exporters and perhaps even some bankers. If a letter of credit is available by negotiation with an advising bank and not confirmed, that bank has the option to pay to the exporter, remit the documents and claim payment from the issuing bank. The exporter must realize that the final decision as to whether or not documents meet the terms and conditions of the letter of credit, and consequently as regards payment, rests with the issuing bank. The negotiating bank will request repayment from the beneficiary (with interest) if payment is not received from the issuing bank. Negotiation without confirmation is with recourse.

A letter of credit available by negotiation and confirmed by the negotiating bank means that the negotiating bank has no option but to negotiate documents presented complying with the terms and conditions of the letter of credit. Such negotiation under a confirmed letter of credit is without recourse. Where a letter of credit is only available by negotiation and not confirmed, many banks which have been nominated as negotiating banks are not prepared to take the risk of paying the exporter for fear they may not get reimbursed. Exporter should appreciate the service provided by a bank when it negotiates documents, and also understand why a bank is not always prepared to negotiate.

Presents For Dads – This Year Get a Gift He Will Love

Buying presents for your Dad is always a daunting task. Even starting your shopping early doesn’t always mean that you’ll hit the mark with the perfect present. As each year passes whether it’s a birthday gift, a Christmas present or a gift for Father’s Day each and every year it seems trying to find a gift for dad always takes the longest time. Even with all that time and effort you can still end up with a gift that doesn’t get opened or used and that is a pity.

Your Dad probably has the money to buy himself whatever he wants so how do you compete with that? Well the key is to try and find something that he will love that he probably wouldn’t buy for himself. Maybe he would consider it foolish to buy himself the latest MP3 player because he wouldn’t think that he could figure it out, but if you take the time to really get to understand his personality, you’ll be certain to get him a gift that will put a smile on his face and give him a new perspective on the world! Since everyone’s father is different and has different things that they are interested in, the way to ensure you get him something he will love is to get to understand and learn about the things that your father likes and appreciates.

Let’s get started. First of all give yourself time. Chat with him in a subtle way about what he likes to do. What hobbies is he interested in or is there something he has always thought about doing that he never had the time or nerve to take up?

Depending on his circumstances and age he may be starting to think more about his health and looking at a gift that would keep him active would be an excellent idea. Hobbies such as fishing, golf, hunting, etc are all great as they give your dad a pleasurable activity whilst getting them outdoors and active. What bit of kit does he need if he wants to get started in a new hobby or is there something new he has been thinking about buying but doesn’t feel he deserves it? If you can track this down and get it to him on that special day he will get a great kick out of it and give him the start he may be looking for to get involved in a new sport or pastime.

Sometime Dads just want to have fun. Many are “Big Kids” that haven’t grown up and again may feel a bit silly buying themselves a video game or games console but would secretly love someone to get one for them so they have the “excuse” to play it.

DVD and Music box sets from their era are also a great idea. What music did they enjoy in their teens? Did they grow up in the Sixties listening to The Doors or were they a big Led Zeppelin fan in their heyday? Why not give me a flavour of their youth like Kevin Spacey in American Beauty maybe they have forgotten the things they once loved. Your gift could trigger those amazing memories once again and give them that feel good factor they just may need.

Get to know and connect with the man who brought you up and loves you. Buying a special gift that has meaning shows you care and have taken the time to understand what is important to him.

4 Smart Ideas For Buying Christmas Presents For Kids

As you begin shopping for presents this Christmas you will be looking for the best place to find good gifts for your Children. However, you will likely be trying to find good items at a reasonable prices. If you are wondering how to achieve this, don’t be concerned. If you know where to look and are willing to spend some time planning and doing research finding great Christmas gifts can be a snap. You can even has some money left over to do something special in addition to the presents you purchase. Here are some great ideas and tips to help you on your search for affordable Children’s Christmas presents.

The one thing to keep in mind is to start planning to set aside funds for Holiday shopping. A majority of the challenges of finding something affordable will be taken care of if you have enough green in your pocket. Having doubts? Don’t worry, because you actually have more than enough time anyway. In ideal conditions you would start saving for holiday shopping the day after Christmas. However if you are like most people you have not thought about doing it until now. You still have time to do so since it is still September. Here are some great ways to start saving. One is the envelop method. Take 50 to 100 dollars and put them in an envelope every paycheck and mark it as Christmas money. This is good because it impresses upon you that the money is for a specific purpose. For an easier method, some banks have a Christmas saving program ask local banks about them. They will be able to do it automatically for you.

The first place to start is in store catalogs and websites. These are great because they will show what items are popular and their retail price. If you can find this out it will give you a ball park estimate of what everything costs. If it is too expensive , the next thing to do is to ask about or look for is sales and rebates. This is your first opportunity to see if you can find any of the items your kids are wanting at a more reasonable price. If you can find good deals take advantage of them. In many cases trying to wait it out will end up with you missing a good opportunity to buy.

Pay attention to the news, especially business. This is a surprisingly good source of information on holiday purchases such as electronics. A good example is video games consoles. Due to a lag in the number of sales many video game companies such as Nintendo, Sony, and Microsoft are cutting the base price of their models. This translates into major saving when combine with sales at retail stores also desperate to make sales. This news has been reported in major business news outlets. So look in print and online media to find news that pertains to this year’s holiday shopping season.

Last of all look for similar generic items and keep the receipt. In many cases there are cheaper versions of the most popular toys. You can find them at discount stores and at toy stores in your area. Most of the time, they are as good as the name brand. In the end, if you can’t find something that will be satisfactory go with the name brand item on sale and keep the receipt if a better deal comes along you can return the item as long as it covered by a return policy. You can also do something special by ordering a letter from Santa