Documents Sent on Approval

From Open Risk Manual

Definition

Documents Sent on Approval. It is the treatment of letter of credit documents where the negotiating financial institution does not certify that the documents meet the requirements of the letter of credit but rather forwards the documents to the issuing financial institution with a request that it examines the documents, obtains waiver of any discrepancies, and pays, or, in the case of time drafts, accepts the drafts, if drawn on them,or authorizes acceptance by the paying/drawee financial institution.

Contributors to this article

» Wiki admin