GLOSSARY |
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Negotiating bank
Bank nominated on a letter of credit to negotiate the bill of exchange, i.e. check the documents, pay the seller and seek reimbursement from the Issuing bank.
Negotiation
'Buying' of a bill of exchange drawn on another party.
When letters of credit are settled by negotiation, a negotiating bank may be nominated to check the documents, pay the seller and seek reimbursement from the Issuing bank. Alternatively the credit may be freely negotiable at any bank.
Nostro-vostro accounts
Accounts held by correspondent banks in each others' currencies.
Each such account has a nostro view - our money held with you - and a vostro view - your money held with us.
Note
Procedure that may carried out to evidence non-payment or non-acceptance of a bill of exchange. A preliminary to a protest. Not recognised in all countries.
Notify party
Party who is to be notified when goods arrive at their destination.