A bank which is requested to confirm a credit but is not prepared to do so, must inform the issuing bank without delay (art. 8).
On the other hand, the issuing bank undertakes to reimburse a nominated bank which has acted on its nomination i.e. has honored/negotiated a complying presentation (art. 7).
So, I think that a bank that adds its confirmation with the condition that its undertaking is dependent upon the acceptance of documents by the issuing bank, is not acting in accordance with those articles and accordingly is not protected as a nominated bank by the UCP just like the silent confirmation concluded with the beneficiary without the issuing bank knowledge.
Regards
Antoine Samaha
Confirmation
Confirmation
I do not believe a bank can add its confirmation to a credit after either complying documents are presented to the issuing bank or an 'acceptance advice' is received from the issuing bank. If I am wrong, it still makes no sense to me.
The logical course of action to follow -assuming documents have been presented through the (nominated) bank concerned- is -depending on the availability of the credit- to negotiate (if needs be without recourse) or honour.
[edited 8/30/2013 10:52:17 AM]
The logical course of action to follow -assuming documents have been presented through the (nominated) bank concerned- is -depending on the availability of the credit- to negotiate (if needs be without recourse) or honour.
[edited 8/30/2013 10:52:17 AM]