Bank payment obligation

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Cash management and trade finance.


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

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