GLOSSARY All Risk Insurance Cover Where a credit stipulates "insurance against all risks", bank will accept an insurance document which contains any "all risks", bank will accept an insurance document which contains any "all risks" notation or clause, whether or not bearing the heading "all risks". Acceptance A draft, payable at a fixed or determinable future date, upon the face of which has been acknowledged in writing the unconditional obligation of the person upon whom it is drawn to pay it at maturity. 1) Bank Acceptance: A draft of which a bank is drawee and acceptor. 2) Trade Acceptance: A draft of which the drawee and acceptor is a mercantile concern. Such an acceptance usually arises from the sale of merchandise. Acceptance Credit An acceptance credit is drawn on and accepted by a bank or acceptance house with whom there is no underlying trade transaction and then discounted either with the accepting bank or a third party which could be another bank or discount house. Accepting Bank A bank which, by writing "accepted" across the face of a bill of exchange and by signing the bill agrees to pay the face amount of the bill at maturity. Acceptor Drawee who signs a bill of exchange and thereby undertakes to pay the bill at its maturity. Accountee (See Drawee) Advance Freight Freight paid in advance. it enables the shipper to endorse the bill of lading with a freight release and the importer to take immediate delivery. Advice of Fate Collecting banks are to advise fate in accordance with the following rules containing: (i) Form of advice (ii) Method of advice (ii) (a) Advice of payment (b) Advice of acceptance (c) Advice of non-payment or non-acceptance, protest, etc. Such instructions will be given with the original collection form. Advising Bank A bank usually operating in the exporter's country, that handles letters of credit for a foreign bank by notifying the export firm that the credit had been opened in its favour. The advising bank fully informs the exporter of the conditions of the letter of credit. It is the duty of the advising bank to verify the credit and advise the beneficiary. The advising bank is the issuing bank's agent and is usually located in the exporter's country. After Date When a draft bears this phrase, the time begins to run from its date. The date of maturity is, therefore, fixed and does not depend upon presentation or acceptance. Against all Risks Insured against all generally accepted risks in marine insurance. Air Way Bill An air transport document that covers both domestic and international flights transporting goods to a specified destination. This is a non￾negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions. Anticipatory Credit Red/Green Clause Credit or Anticipatory Credit is a Letter of Credit containing a clause authorising the advising bank to make advances to the beneficiary/exporter before the beneficiary presents the required documents under the credit. It is a method of pre-shipment finance for the exporter. Alongside The side of a ship. Goods to be delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded abroad the ship. Anticipatory Credit Red/Green Clause Credit or Anticipatory Credit is a letter of credit containing a clause, authorising the advising bank to make advances to the beneficiary/exporter before the beneficiary presents the required documents under the credit. it is a method of pre-shipment finance for the exporter. Applicant The person who initiates a Letter of Credit, i.e. the person who applies to his bank to issue a credit in favour of the beneficiary/exporter. The applicant is the importer (buyer) of goods. Assignee/Allocatee A third party to whom, in certain defined circumstances, either a part of