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can someone please explain me the exact meaning of this UCP600 line

Consequently, the undertaking of a bank to honour, to negotiate or to fulfill any other obligation under the credit is not subject to claims or defenses by the applicant resulting from its relationships with the issuing bank or the beneficiary.

It simply means that the applicant can not claim his money back or ask the issuing bank/confirming bank to refuse the documents or not to pay, relying on any contractual agreements between him and the bank or between him and the beneficiary, as long as the documents are complied with the L/C terms and conditions.

Article 4 - Credits v. Contracts
a. A credit by its nature is a separate transaction from the sale or other contract on which it may be based.

Banks are in no way concerned with or bound by such contract, even if any reference whatsoever to it is included in the credit. Consequently, the undertaking of a bank to honour, to negotiate or to fulfil any other obligation under the credit is not subject to claims or defences by the applicant resulting from its relationships with the issuing bank or the beneficiary.

A beneficiary can in no case avail itself of the contractual relationships existing between banks or between the applicant and the issuing bank.

ybattia wrote:It simply means that the applicant can not claim his money back or ask the issuing bank/confirming bank to refuse the documents or not to pay, relying on any contractual agreements between him and the bank or between him and the beneficiary, as long as the documents are complied with the L/C terms and conditions.

Article 4 - Credits v. Contracts
a. A credit by its nature is a separate transaction from the sale or other contract on which it may be based.

Banks are in no way concerned with or bound by such contract, even if any reference whatsoever to it is included in the credit. Consequently, the undertaking of a bank to honour, to negotiate or to fulfil any other obligation under the credit is not subject to claims or defences by the applicant resulting from its relationships with the issuing bank or the beneficiary.

A beneficiary can in no case avail itself of the contractual relationships existing between banks or between the applicant and the issuing bank.

Hi friend,
I agree with your comments. However, in real life things may go different. For instance in a case, the issuing bank confirmed the documents' complying and advised maturity date of payment to confirming bank but a few weeks before payment, issuing bank sent a message to confirming bank informing that they have received an injunction preventing them to pay for the Lc and will not pay until the injunction removed. And for similar situations I remember ICC opinions stating that the matter is out of UCP concern.