Forfaiting Glossary

Glossary Items beginning with : C

Certificate of Inspection

A document accredited by a third party outlining the actions taken with respect to imported/exported goods such as “tested, analyzed or inspected”, also specifying details such as quality and quantity and certifying the respective outcome.

Certificate of Origin

A signed document officiating and certifying the origin of the items being imported or exported with respect to invoiced goods. A free-format document can be used or a specific format such as GSP Form A.

Chapter 11

US bankruptcy law under which a corporation seeks protection from its creditors while it seeks to revitalise the business.

Chinese Wall

A communication, information and ethical barrier that separates business units within an organization to prevent confidential and restricted information from flowing between various groups within the organization which could be harmful and result in conflict of interest.

CIM

Rail consignment note (international). Acronym for “Convention International concernant le transport des Marchandises par Chemin de Fer”.

Clean Collection

A collection which does not involve commercial documents but consists of financial documentation only.

Club Loan

Similar to a syndicated loan with the fundamental difference that the loans are prepared by a group of banks of a fixed composition from the outset of the transaction.

CMR

Road Consignment note (international). Acronym for “Convention International concernant le transport des Marchandises par Route”.

Collecting Bank

The bank in the buyer’s (drawee’s) country to which the Collection Order and documents are directed.

Collection

A process by payment, or an accepted draft, is received by a Collecting Bank from an importer of goods for payment to the exporter in return for documents giving title to the goods. Collections are governed by the Uniform Rules for Collections published by the ICC Uniform Rules for Collection (URC522).