ICC Digital Library Forum

My question is in the event of conflict between the L/C text and the UCP, which one will prevail?

For example, L/C issued today with a clause that it will become operative on 15 May 2015 (i.e.30 days after) whereas Article 7 b of the UCP600 states "An issuing bank is irrevocably bound to honour as of the time it issues the credit".

If beneficiary makes a claim before 15 May 2015, is there any obligation of the issuing bank to honour?

Any ICC opinion in this reagrd?

Thanks,

Shahed
Toronto

Art. 1 of UCP states that UCP rules are binding on all parties thereto unless expressly modified or excluded by the credit.

So, this is an exclusion of art. 7 b and therefore the clause in the L/C prevails

Regards
Antoine

The likely result here is that the LC was issued and the obligation was extablished (and should be booked) immediately, but a presentation within the first 30 days would be non-complying (in which case the issuer should timely refuse it citing the discrepancy). Regards, Jim Barnes