ICC Digital Library Forum

An L/C was confirmed by Bank X in Singapore, issued by Bank Y in Egypt.

Complying presentation has been made by the beneficiary to the confirming bank, and asked for the payment.

Confirming bank in Singapore has honoured the beneficiary's presentation. They in turned claimed reimbursement from the issuing bank by authenticated swift and at the same time forwarded the full set of documents to them.

Issuing bank in Egypt was closed due to unrest (civil commotion) and as such they were not in a position to honour the confirming bank's reimbursement claim.

When they resumed business, the L/C has been expired by that time.

Based on Article 36 of UCP 600, do you think issuing bank has any obligation to pay to the confirming bank when it resumes business even the LC has been expired.

Regards,

Shahed

I am surprised it is not glaringly obvious that Article 36 is completely irrelevant to an issuing bank’s reimbursement obligations when a complying presentation has been made to a nominated bank (as is, for example, the confirming bank in Singapore). What is relevant is sub-Article 7(c) which is not time limited; of course the issuing bank is obliged to reimburse –with interest if payment is delayed- when it resumes business.