Negotiation, in respect of:

  • A Bill of Exchange, occurs when it is transferred from one person to another in such a manner as to constitute the transferee the Holder of the Bill of Exchange. A Bill of Exchange payable to the Bearer is negotiated by Delivery. A Bill of Exchange payable to Order is negotiated by the Indorsement of the Holder completed by Delivery
  • ABill of Lading, see Transferable, and
  • A Letter of Credit, occurs when the Nominated Bank purchases Bills of Exchange (drawn on a bank other than the Nominated Bank) and/or documents under a Complying Presentation, by advancing or agreeing to advance funds to the Beneficiary on or before the day on which reimbursement is due to the Nominated Bank.

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