CHAPTER 18 - PARTIES IN BANK TO
BANK REIMBURSEMENTS
Reimbursing Bank
·
A bank which is given a Reimbursement Authorization by the
Issuing Bank in the LC.
·
The Reimbursing bank is the bank that, at the Instruction of
the issuing bank, is authorized to Honour the payment when the Negotiating or
Confirming bank Claims for the value of documents negotiated or presented by
them.
·
An issuing bank is not relieved of any of its obligations to provide
reimbursement if reimbursement is not made by a reimbursing bank to the
Negotiating bank or Confirming .Bank on first demand.
·
It is normally the bank where the issuing bank is maintaining
their foreign currency nostro account.
Claiming Bank:
·
As per the Issuing Bank’s Instruction on Reimbursement
mentioned in the LC, the Negotiating Bank or Confirming Bank Claims the money
from Reimbursing Bank, so from Reimbursing Bank’s view the bank which claims
the Payment will be seen as Claiming Bank.
·
"Claiming bank" is a bank which is authorized to
present a reimbursement claim to the reimbursing bank.
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