Negotiation

In banking, the action by which a negotiable instrument is circulated (bought and sold) from holder to another.
In letter of credit transactions, the examination of the seller´s, documentation by the negotiation bank to determine if they comply with the terms and conditions of the letter of credit and the giving of value for drafts and/or documents by the bank authorized to negotiate. Mere examination of the documents without giving value does not constitute a negotiation. See Availability; letter of credit.

Dictionary of International Trade