what is presenting bank

Dictionary of International Trade

Presenting bank.

In bank collections, the collecting bank that deals directly with the drawee ; usually is the drawee ´s bank of the account.

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Vostro account
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Presenting Bank

Definition (1):

Presenting Bank is the collecting bank making the presentation (of the collection) to the drawee .

Definition (2):

According to financial-dictionary.thefreedictionary.com, “A bank that gives a demand for payment to another bank.” For instance, the presenting bank can submit a check to another bank for receiving payment. This bank does this if another bank draws the financial instrument.

Definition (3):

A presenting bank is a bank that requests a collection bill’s payment. It can be a collecting bank, its corresponding branch, or a local correspondent whichever is better located for contacting the importer.

In other words, it is a financial institution presenting a negotiable instrument for a payment to another financial institution (or the advising financial institution).

The clearing process starts with a cheque’s deposit in a bank. The bank delivers this cheque and other cheques to the branch\ bank where they are drawn. When the banker is sure about this instrument’s genuineness and funds are available, this cheque is passed for payment.

The unpaid cheques are returned to the presenting bank through the return clearing. The fund’s realization takes place after return clearing is completed and by an unpaid cheque’s absence.

Related Terms

Savings banks
Investment banker
Savings bank life insurance
Bank Insurance Fund (BIF)

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presenting bank

Quick reference.

Any bank seeking payment of a bill of exchange, cheque, draft, or other financial instrument by submitting it to the drawee's bank.

From: presenting bank in A Dictionary of Finance and Banking »

Subjects: Social sciences — Economics

§ 28:4–105. Definitions of types of banks.

In this article, the term:

(1) “Bank” means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company.

(2) “Depositary bank” means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter.

(3) “Payor bank” means a bank that is the drawee of a draft.

(4) “Intermediary bank” means a bank to which an item is transferred in course of collection except the depositary or payor bank.

(5) “Collecting bank” means a bank handling an item for collection except the payor bank.

(6) “Presenting bank” means a bank presenting an item except a payor bank.

§ 4-503. RESPONSIBILITY OF PRESENTING BANK FOR DOCUMENTS AND GOODS; REPORT OF REASONS FOR DISHONOR; REFEREE IN CASE OF NEED.

Unless otherwise instructed and except as provided in Article 5, a bank presenting a documentary draft :

(1) must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after presentment; otherwise, only on payment; and

(2) upon dishonor, either in the case of presentment for acceptance or presentment for payment, may seek and follow instructions from any referee in case of need designated in the draft or, if the presenting bank does not choose to utilize the referee's services, it must use diligence and good faith to ascertain the reason for dishonor, must notify its transferor of the dishonor and of the results of its effort to ascertain the reasons therefor, and must request instructions.

However the presenting bank is under no obligation with respect to goods represented by the documents except to follow any reasonable instructions seasonably received; it has a right to reimbursement for any expense incurred in following instructions and to prepayment of or indemnity for those expenses.

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COMMENTS

Why Is Personal Presentation Important?
Personal presentation is important because it can mean obtaining a bank loan, getting a job, a high tip or creating a good impression with new acquaintances. Quick judgments are common, and how a person looks and carries himself is a shortc...
What Are the Three Types of Check Endorsements?
The three types of check endorsements are blank, restrictive and special. Each type of endorsement has its own rules for depositing or cashing the check. A blank endorsement, the most common type, is endorsed by the payee and presented to t...
What Is the Definition of a Dishonored Check?
A dishonored check is defined as a check that has been presented to a banking institution for payment and has been returned to the depositor due to insufficient funds. Dishonored checks are also referred to as bounced checks or returned che...
What is Presenting bank? Definition and meaning
Definition of Presenting bank: In bank collections, the collecting bank that deals directly with the drawee; usually is the drawee´s bank of the account.
Presenting Bank
Presenting Bank is the collecting bank making the presentation (of the collection) to the drawee. Definition (2):. According to financial-dictionary.
Presenting bank Definition: 173 Samples
Presenting bank means a bank or other depositor of a Federal Reserve Bank which presents Disbursement Postal Money Orders to and receives credit therefor
Presenting bank
Any bank seeking payment of a bill of exchange, cheque, draft, or other financial instrument by submitting it to the drawee's bank. From: presenting bank in
§ 28:4–105. Definitions of types of banks.
(6) “Presenting bank” means a bank presenting an item except a payor bank. (Dec. 30, 1963, 77 Stat. 697, Pub. L. 88-243, § 1; Mar. 23, 1995, D.C. Law 10-249
Presenting Bank Law and Legal Definition
§ 4-105, a presenting bank means a bank presenting an item except a payor bank. Payor bank is the drawee of a draft. Legal Definition list. Presentence
Presenting Bank
A bank that gives a demand for payment to another bank. For example, the presenting bank may submit a check to another bank and receive payment. The presenting
Presenting Banks
A bank that gives a demand for payment to another bank. For example, the presenting bank may submit a check to another bank and receive payment. The presenting
§ 4-503. RESPONSIBILITY OF PRESENTING BANK FOR
RESPONSIBILITY OF PRESENTING BANK FOR DOCUMENTS AND GOODS; REPORT OF REASONS FOR DISHONOR; REFEREE IN CASE OF NEED. Unless otherwise instructed and except as
Glossary of Global Trade Terms
The remitting/negotiating/presenting bank's letter covering bills of exchange and/or documents sent to the collecting/issuing bank, which lists the documents
Collections
The presenting (i.e., collecting) bank: (a) reviews the documents making certain they are in conformity with the collection order; (b) notifies the buyer about