Silent confirmation

SladjanaSkakic · Post by **SladjanaSkakic** » Thu Nov 06, 2014 12:00 am

Hello,

Is it correctly understood that UCP600, art 12a provides for a Silent Confirmation?

Thank you in advance for sharing your opinions.

Best regards,
Sladjana S.

[edited 11/13/2014 1:39:16 PM]

HOANGTHIANHTHU_invalid · Post by **HOANGTHIANHTHU_invalid** » Thu Nov 06, 2014 12:00 am

No. I don't think so.

Kind regards,
N.H.Duc

JimBarnes · Post by **JimBarnes** » Thu Nov 06, 2014 12:00 am

Art. 12a indirectly provides for "silent confirmation" in that it says a nominated bank is not obligated except to the extent it undertakes to obligate itself to the beneficiary. That exception could cover an undertaking that is as broad as an authorized confirmation or, more typically, an undertaking to purchase a facially complying presentation with limited recourse. The law determining the reimbursement rights of a nominated bank might favor a confirming bank more than a "silent confirmer", with the practical effect of reducing the scope of a silent confirmer's undertaking.

(The opening reference in Art. 12a to "confirming bank" is limited to a bank that is authorized by the issuer to confirm and that also adds its confirmation. See the definitions of confirmation and confirming bank in Art. 2.)

Regards, Jim Barnes
[edited 11/6/2014 10:02:05 PM: to add "practical" before "effect"]