ICC Digital Library Forum

I need a comment on the article 17 of UCP 500 on the confirming bank. what will be the position of the confirming bank in case the credit conform documents had presented to the confirming bank, but confirming bank unable to reach the issuing bank for six months. after re-opens the issuing bank shall take up the documents for examination and act as per article 14 or does not cover the confirmang bank by asserting that the credit expired during the force majeure. can the issuing bank entitle to apply the article 17 to the confirming bank as if to the beneficiary.

many thanks in advance for the comments.
abdurrahman ozalp

Without liability/responsibility, personally:

What I see as relevant is sub-Articles 10d & 14a and that a complying presentation was made to the nominated bank. Article 17 does not exonerate an issuing bank from its obligations under these sub-Articles if it was shut when the credit expired.

In my opinion the above comments are clear and correct. Yes, if the L/C terms and conditions were met, the issuing bank is bound to reimburse the confirming/nominated bank.

Pavel Andrle
[edited 1/9/03 10:15:51 AM]

I offer my thanks to everybody who spent their time on my question. I agree with you, but anxious about the case if an issuing bank assert such idea. what would protect or support me? I could not found an opinion or decision. if you have pls let me know. regards.