Bank payment obligation: Difference between revisions
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imported>Doug Williamson (Expand. Source: Global supply chain finance forum.) |
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It is an irrevocable undertaking of a buyer's bank to pay a specified amount to the seller's bank, when it receives notification of a data match from an independent [[data matching]] service. | It is an irrevocable undertaking of a buyer's bank to pay a specified amount to the seller's bank, when it receives notification of a data match from an independent [[data matching]] service. | ||
The buyer's bank is the 'obligor bank' under the BPO. | |||
The seller's bank is the 'recipient bank'. | |||
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* [[Letter of credit]] | * [[Letter of credit]] | ||
*[[Data matching]] | *[[Data matching]] | ||
*[[Obligor bank]] | |||
*[[Recipient bank]] | |||
*[[Transaction matching application]] | *[[Transaction matching application]] | ||
Revision as of 14:10, 20 June 2016
(BPO).
A bank payment obligation is an instrument that automates the payment of trade transactions.
It is an irrevocable undertaking of a buyer's bank to pay a specified amount to the seller's bank, when it receives notification of a data match from an independent data matching service.
The buyer's bank is the 'obligor bank' under the BPO.
The seller's bank is the 'recipient bank'.
See also
