The Role Of Nominated Bank In Letters Of Credit

Letters of credit are considered as one of the methods of payment in international transactions, which is of great importance to international trade law. For the operation of the credit document process, several persons, including the applicant, beneficiaries and several banks, including the nominated bank, has acted. Thus, in order to understand the scope of authority of each of these activists, it is necessary to determine the scope of the powers and duties of these factors in a proper manner. In this regard, UCP600, issued by the International Chamber of Commerce in 2007, sets out a law regime around the above-mentioned credits. Thus, it was discovered in the UCP600 regulation that the authority of the nominated bank, depending on whether the acceptance of credit is confirmed, follows different forms. However, in this paper, the intention is to describe and analyze the position of the nominated bank in the field of documentary credits, in order to clarify clearly its authority.