Suppose document against an LC ( confirmed) has been received at opener's counter.
As a document checker how can a person be confirmed about the following from the documents presented alone if the documents has been sent by beneficiary's bank directly to the opening bank:
1. Whether LC has been confirmed?
2. The name of the confirming bank?
(even though opener is aware about the name of the bank)
3. Whether confirming bank has extended their conformation to the amendments also?
thanks?
How To Understand That A Credit Has Been Confirmed
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cparial
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cristiand969
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Re: Confirmation
Dear cparial,
Could you be more specific on your question?
Thanks!
Could you be more specific on your question?
Thanks!
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iLC
- Posts: 504
- Joined: Thu Jun 26, 2008 10:33 pm
how to understand that a credit has been confirmed
dear cparial,
im not also so sure about your question. however on the basis of my understanding -
1. Whether LC has been confirmed?
the issuing bank should be one of the first to know when a credit is confirmed. under UCP600, confirmation requires authorization from issuing bank and generally the confirming bank inform the LC parties once the letter of credit is confirmed with the terms and conditions of the confirmation.
2. The name of the confirming bank?
(even though opener is aware about the name of the bank)
if a document is presented by the nominated bank to the issuing bank directly, there is no reason that it will bear a reference of confirmation as it is not availing the confirmation.
3. Whether confirming bank has extended their conformation to the amendments also?
UCP 600 article 10b
iLC
im not also so sure about your question. however on the basis of my understanding -
1. Whether LC has been confirmed?
the issuing bank should be one of the first to know when a credit is confirmed. under UCP600, confirmation requires authorization from issuing bank and generally the confirming bank inform the LC parties once the letter of credit is confirmed with the terms and conditions of the confirmation.
2. The name of the confirming bank?
(even though opener is aware about the name of the bank)
if a document is presented by the nominated bank to the issuing bank directly, there is no reason that it will bear a reference of confirmation as it is not availing the confirmation.
3. Whether confirming bank has extended their conformation to the amendments also?
UCP 600 article 10b
regardsb. An issuing bank is irrevocably bound by an amendment as of the time it issues the amendment. A confirming bank may extend its confirmation to an amendment and will be irrevocably hound as of the time it advises the amendment. A confirming bank may, however, choose to advise an amendment without extending its confirmation and, if so, it must inform the issuing bank without delay and inform the beneficiary in its advice.
iLC