How come draft not required for negotiation. And at payment I don't think so draft is required because payment will receive in 5 days if the documents are complied.
Here the question specifically states credit available with and requiring a draft drawn on "an issuing bank". Hence, negotiation will not be applicable here. Furthermore, refer Article 2 of UCP 600, where definition for negotiation is given. It is mentioned there clearly that negotiation can be done with or without drafts. I hope this clears your doubt.
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Thank u and helpful
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How come draft not required for negotiation. And at payment I don't think so draft is required because payment will receive in 5 days if the documents are complied.
Here the question specifically states credit available with and requiring a draft drawn on "an issuing bank". Hence, negotiation will not be applicable here. Furthermore, refer Article 2 of UCP 600, where definition for negotiation is given. It is mentioned there clearly that negotiation can be done with or without drafts. I hope this clears your doubt.