Is The Presentation To Confirming Bank Essential Under A LC?

[Md.zakir Hossen]

I NEED YOUR ANSWER FOR FOLLOWING 02 QUESTIONS:
01.IS THE PRESENTATION OF DOCS TO AN ISSUING BANK ESSENTIAL IN ORDER TO MAINTAIN THE LIABILITY OF THE ISSUING BANK.
02 IS PRESENTATION OF DOCS. TO A CONFIRMING BANK ESSENTIAL IN ORDER TO MAINTAIN THE LIABILITY OF THE CONFIRMING BANK?

[CDCS]

Zakir Bahi,

Issing Bank's liabilities are to honour a complying presentation and reimburse the nominated bank that has honoured or negotiated a compying presentation and forwarded the document to the issuing bank.

Article-7 of UCP-600 states that " (a) Provided that the stipulated documents are presented to the nominated bank or to the issuing bank and that they constitute a complying presentation, the issuing bank must honor....

(c) An issuing bank undertakes to reimbure a nominated bank that has honoured or negotiated a compying presentation and forwarded the document to the issuing bank....

So there is a provition to present the documents to the issuing bank or forward the document to the issuing bank by nominated bank.

02. The answer is same in case of coferming bank according to article-8 of UCP-600.

Thanks.

[cristiand969]

I would say that when the credit is confimed by a bank, there is a must to present documents to this bank either directly or indirectly through a nominated bank (if there is different than confirming bank) See art.8 a and c. based on these, the presentation of documents to the issuing bank will automatically withdraw confirmation of the confirming bank i.e. the undertaking to pay beneficiary