International Commercial Terms Document - N

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National Treatment: The concept that countries must afford foreign companies the same access and other benefits they do local domestic firms.

Negotiating bank: Bank nominated on a letter of credit to negotiate the bill of exchange, i.e. check the documents, pay the seller and seek reimbursement from the Issuing bank.

Negotiation: Discussion and give and take leading to an agreement. In respect to Letters of credit is means “buying” of a bill of exchange drawn on another party. In situations where letters of credit are settled by negotiation, a negotiating bank may be nominated to check the documents, pay the seller and seek reimbursement from the Issuing bank. Alternatively the credit may be freely negotiable at any bank.

Net Lease: A lease wherein payments to the lessor do not include insurance and maintenance, which are paid separately by the lessee.

Nonrecourse Loan: In a leveraged lease, the lenders cannot look to the lessor for repayment. The lender's only recourse is to the lessee and, therefore, the lessee's credit rating is of prime importance.

Non Tariff Barriers: Measures other than tariffs that restrict imports. Import quotas, standards, licenses, and other policies can serve as not-tariff barriers.

Non-Vessel Operating Common Carrier: Also known as an NVOCC, a company which consolidates small shipments from different sources consigned to the same destination into a single container for shipment overseas by either ocean or air carriers.

Nostro-vostro accounts: Accounts held by correspondent banks in each others' currencies. Each such account has a nostro view - our money held with you - and a vostro view - your money held with us.

Notify party: the party who is to be notified when goods arrive at their destination.