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.