confirming bank undertaking...

[Navi]

Hi friends...

We received an LC from issuing bank and advised to beneficiary through an advising bank adding our confirmation. If the beneficiary presents documents directly to issuing bank via advising bank, will our confirmation be still valid? In other words, documents presented to issuing bank were complying but for some reasons issuing bank failed to honour, should we (as confirming bank) honour instead of issuing bank ?
.
Regards

[shahriar]

im assuming that the credit has expired. given that the advising bank is a nominated bank. in my opinion, yes. the confirming bank's undertaking remains since a presentation was made to the nominated bank and as per article 8 confirming bank honors if a document is presented to the nominated bank.

[Navi]

im assuming that the credit has expired. given that the advising bank is a nominated bank. in my opinion, yes. the confirming bank's undertaking remains since a presentation was made to the nominated bank and as per article 8 confirming bank honors if a document is presented to the nominated bank.

Hi shahriar,
.
I have to give more details. Here the confirming bank is the nominated bank. LC is available with us by payment. However, beneficiary presents docs to advising bank and that bank sends directly to issuing bank. Is the confirming bank (we) still obliged to pay in case the issuing bank fails to do?

[shahriar]

dear navi,

from your post it appears that advising bank is not a nominated bank. that is payment is only available with you and issuing bank. in that case, assuming that you used standard confirmation clauses, the confirming bank is not liable to honor. however i would like to know about the field 31d

[Navi]

thanks shahriar ,
.
you know, as a confirming bank the problem we experienced a few months ago, made us act too prudently...
.
field 31d indicates the country of beneficiary...
.
Consider another case:
Issuing Bank A issues an LC
Available with Bank B
Bank C is requested to add its confirmation to the Credit and it confirms this with MT799 to the nominated Bank B
.
At this case docs will be presented to Bank B (nominated bank , and not to Bank C (confirming bank).
What do you think about the undertaking of the confirming banks with respect to the two situations? Can we describe the undertaking of the confirming bank on the second situation similar to "Reimbursement undertaking"?

[cristiand969]

Art. 8 of UCP first paragraph answers you about the place where docs can be presented. Either to negotiating bank or confirming bank.
In case docs are presented directly to issuing bank, the undertaking of confirming bank ceases.