Dictionary of International Trade
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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Presenting Bank is the collecting bank making the presentation (of the collection) to the drawee .
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.
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.
- Savings banks
- Investment banker
- Savings bank life insurance
- Bank Insurance Fund (BIF)
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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
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- Oxford University Press
date: 05 September 2023
- Legal Notice
Character limit 500 /500
§ 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.