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Dear all,
Pls share your view on my following confusion:
Can confirming bank withdraw its confirmation without consent of beneficiary in any event?
regards
nesar

Hi,

As per UCP 600 8 b, Confirming bank is irrevocably bound...... as of the time it adds its confirmation.

Here "irrevocable" is the key word for your answer, i think...

Regards

dear nesar,

it depends. if there is an amendment which substantially change the content of the letter of credit, it may happen. sorry, unable to find a good example right now.

regd

shahriar

Confirmation is the further undertaking of the confirming Bank in addition to the issuing bank undertaking.
SO confirming Bank can not withdraw its undertaking.

Confirming Bank can advise Any amendment without its confirmation.

Strictly from the example given by shahriar the confirming bank can at least to choose not to extend the confirmation to the credit but in no case to withdraw confirmation to the original credit.
From a general point of view, yes, a confirming bank can withdraw confirmation to the credit in several instances:
-beneficiary decides to present document directly to issuing bank or instruct the bank with which the credit is available to send docs directly to issuing bank hence bypassing the confirming bank (see art.8 a) and c) of UCP600)
- beneficiary present documents which even if are conform with credit stipulates additional data contrary to the law or the like.
- there is proof of fraudulent documents presented by beneficiary
.....
and the examples can go on ....
regards
Cristian