Best Trade Solution

dear all,

can a LC be confirmed after the presentation has been made to the issuing bank or nominated bank and issuing bank has incurred a deferrer payment undertaking?

regd

shahriar

I think no. because in confirmation it is suposed that if nominated or issuing bank do not honour or negotiate the documents, the beneficiary can present docs to confirming bank and the latter must honourif the docs are complied with. in case you mentioned there is not exist any docs to be presented to confirming bank because they have already been presented to issuing bank. threfore it will not match UCP 600 - Article 8

This is not a confirmation in accordance with UCP. Rather a solution given by a bank to accomodate a credit facility to a LC beneficiary backed on issuing bank undertaking.

rgds
Cristian

lets make thing simple. what a bank confirms? of course a letter of credit. when an issuing bank incur a deferrer payment undertaking, there is no LC anymore. so there is no question of confirmation. a better solution would be a reimbursement undertaking.