Presentation – Parties to the Letter of Credit

Understanding duties and responsibilities of letter of credit participants.

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5. Nominated Bank

  • Nominated bank is the bank with which the credit is available.
  • Most of the time nominated banks are also the advising banks.
  • Nominated banks may honor a complying presentation. But their payment responsibility is not obvious. If they choose not to honor a complying presentation, there is no penalty mechanism defined in the letter of credit rules, UCP 600, for such an activity