Best Trade Solution

hi all,
UCP600 Artical 6 (a) states "...A credit available with a nominated bank is also available with the issuing bank"

Question is: When at a confirm Credit,the confirming bank is not a nominated bank, can we say a credit available with a nominated bank is also available with the confirming bank?

thanks
Tracy

yes, i think so

thanks for you reply fiona~

Hi
Of course and accordingly said lc will be available at confirming bank in addition to
the issuing bank .
thanks

mini_tracy wrote:hi all,
UCP600 Artical 6 (a) states "...A credit available with a nominated bank is also available with the issuing bank"

Question is: When at a confirm Credit,the confirming bank is not a nominated bank, can we say a credit available with a nominated bank is also available with the confirming bank?

thanks
Tracy

its a very tricky question indeed. in my opinion no. u need to understand the term "available with"; it means that the document can be presented at that counter for honor or negotiation. since issuing bank is the primary obligatory, a credit is always available with the issuing bank. but this is not the case with the confirming bank.

without going into detail, the beneficiary in your case can not place the document directly to the confirming bank for honor or negotiation. it has to present the document to a nominated bank which will forward the document to the confirming bank.

I still think the answer is yes. According to Article 8 Confirming Bank Undertaking. Confirming Bank could also Honour e the L/C. And in practice, I think there is no problem if the confirming bank would like to take the Doc.