Many thanks Jim & Jeremy The intimation behind the statement was that a confirming bank can wait for reimbursement before paying the beneficiary/presenter. Since most settlements are made to the confirming bank's nostro a/c at another bank this usually means that the confirming bank can only con...

Hi Shahed,

You are absolutely right. As a confirming bank, if you find documents in order you must honour in accordance with UCP Article 8. 'Honour' is defined in Article 2.

Rgds

I thought I knew but I received an e-mail this week which stated:- "the purpose and main benefit of confirming a letter of credit is to guarantee payment to the beneficiary by underwriting the issuing bank and country risks and not to expedite payment to him" I invite debate on the above s...

A couple of us from ANZ in London are attending the titled conference and would be grateful to know where other delegates are mainly staying as there does not appear to be any hotels close by, apart from motorway hotels.

We would like to be staying amongst other like minded people.

Many thanks

Hi Svetlana, I am glad you have raised this issue as this is something I keep drumming home to my staff. According to UCP600 Art 16c if a bank decides to refuse to honour a presentation it must do so in a single notice. It does not elaborate on the form that notice should take, so a telephone conver...

Hi Christian, I don't believe Art 32 is applicable as there are no 'given periods'. From the details provided there is no guidance as to which items should be shipped at what time - hence the surprise that 'd' was the first presentation. This is not a true drawing or shipping schedule. I would agree...

Hi Jason, You are right, a confirming bank is giving it's seperate undertaking and this is usually at the request of the issuing bank. Therefore, why would the issuing bank not allow TT reimbursement? On a sight L/C, after finding documents in order, a confirming bank will give it's undertaking to t...

Hi Neil, The L/C is available with the nominated bank but that bank is not obliged to add it's confirmation if it is unhappy with the terms, including the reimbursement clause. However, as Christian has pointed out UCP Art 6 states that L/Cs are always "also available with the issuing bank"...

Hi Khalid,

Thanks for the response. However, as indicated in my original post, I don't believe R468 provides the answer. That only appears to be concerned with situations where insurance is in excess of the 110%.

Regards

Thanks John,

Any opinions from Jeremy, Christian and Jim?