Can Issuing Bank Be Confirming Bank Also

pj4u44 · Post by **pj4u44** » Sun Feb 15, 2015 9:34 pm

Can issuing bank confirm the letter of credit

picant · Post by **picant** » Tue Feb 17, 2015 10:25 pm

Hi Pal,

IMHO, the issuing bank does not confirm, being its role already indicated in art 7 UCP 600.
In the past i saw some l/c where it was written " having issued this confirmed l/c" or the like.
Other comments appreciated
Ciao

mano · Post by **mano** » Wed Feb 18, 2015 6:14 pm

dear,

we need to understand what is confirming bank's role, confirming bank duties, and confirmation term
as per UCP600
1-Confirmation means a definite undertaking of the confirming bank, in addition to that of the issuing bank,
to honour or negotiate a complying presentation.
2-Confirming bank means the bank that adds its confirmation to a credit upon the issuing bank's
authorization or request.
3-confirming bank role is related mainly to beneficiary, the beneficiary will be care fr the existence of confirming bank in its country to avoid mainly a-issuing bank credit risk (credit worthiness) b-country risk

from the above comments the issuing bank can not be a confirming bank as no need for additional undertaking, guarantee from separate
.
to make the matter clear lets imagine both applicant and beneficiary are banking with same bank, would the issuing bank issue a credit and ask for confirmation!!!!!!!! or just state it is confirmed credit (where is the additional guarantee of payment, from whom)
Regards

RAHULCH · Post by **RAHULCH** » Sun Mar 01, 2015 12:01 pm

confirmation is the separate undertaking given by a separate bank on the LC issued by a particular bank

hardy2175 · Post by **hardy2175** » Tue Mar 10, 2015 11:46 pm

What is the point of a confirming bank then ?

SREEJA · Post by **SREEJA** » Wed Mar 11, 2015 9:57 pm

Issuing bank can never be a confirming bank

article "8" is the proof for it

its a separate irrevocable undertaking by another bank

RAKESHCH · Post by **RAKESHCH** » Thu Mar 12, 2015 8:45 pm

issuing can never be a confirming bank

its a separate undertaking of a separate bank.

article 8 justifies

thutrang9591 · Post by **thutrang9591** » Sun Mar 22, 2015 3:47 pm

Issuing bank never become confirming bank because it is ultimately responsible for payment under L.C