Agree to Advance Fund and Negotiation with Recourse

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Dear O.F.,
I am impressed by your comments on negotiation. During all these years, I have been a lone fighter disagreeing with opinions of the ICC Banking Commission on transport an insurance issues. Now it is glad that I see a comrade, particularly from my mother country - China.
I agree with your comments on the part that negotiation should not be on the date when reimbursement from the issuing bank is ascertained. As you have said, that is not negotiation because there is no risk as a "consideration" for negotiation.
I understand that in China civil law there is no such concept as "consideration" (value or cost if you will in layman term).
However, I would like to point out that in international banking practice, there is always negotiation with recourse, particularly that the negotiating bank is not a confirming bank. We have to recognize this practice and fact of life.
Secondly, some beneficiaries in USA may ask the nominated banks to issue a written undertaking to agree to negotiate when it is needed by the beneficiary in a future time if the documents comply. This is to prepare a "finance umbrella" to use the fund to purchase raw materials or buy goods from other parties or for other uses. That letter to undertake to negotiate in case of need is a kind of "agree to advance fund".
I would like Kim to add my responses to the "tail" of this article from O.F. to create the linkage and hopefully to inspire more views from other editors.
Best regards,
T. O.

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