Can Issuing Bank Be Confirming Bank Also

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pj4u44
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Can Issuing Bank Be Confirming Bank Also

Post by pj4u44 » Sun Feb 15, 2015 9:34 pm

Can issuing bank confirm the letter of credit

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picant
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No reasons

Post by picant » Tue Feb 17, 2015 10:25 pm

Hi Pal,

IMHO, the issuing bank does not confirm, being its role already indicated in art 7 UCP 600.
In the past i saw some l/c where it was written " having issued this confirmed l/c" or the like.
Other comments appreciated
Ciao

mano
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issuing banke v.s confirming bank role

Post by mano » Wed Feb 18, 2015 6:14 pm

dear,

we need to understand what is confirming bank's role, confirming bank duties, and confirmation term
as per UCP600
1-Confirmation means a definite undertaking of the confirming bank, in addition to that of the issuing bank,
to honour or negotiate a complying presentation.
2-Confirming bank means the bank that adds its confirmation to a credit upon the issuing bank's
authorization or request.

3-confirming bank role is related mainly to beneficiary, the beneficiary will be care fr the existence of confirming bank in its country to avoid mainly a-issuing bank credit risk (credit worthiness) b-country risk

from the above comments the issuing bank can not be a confirming bank as no need for additional undertaking, guarantee from separate
.
to make the matter clear lets imagine both applicant and beneficiary are banking with same bank, would the issuing bank issue a credit and ask for confirmation!!!!!!!! or just state it is confirmed credit (where is the additional guarantee of payment, from whom)
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RAHULCH
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ISSUING BANK CANNOT BE A CONFIRMING BANK

Post by RAHULCH » Sun Mar 01, 2015 12:01 pm

confirmation is the separate undertaking given by a separate bank on the LC issued by a particular bank

hardy2175
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issuing bank = confirming bank ????

Post by hardy2175 » Tue Mar 10, 2015 11:46 pm

What is the point of a confirming bank then ?

SREEJA
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Can Issuing Bank Be Confirming Bank Also

Post by SREEJA » Wed Mar 11, 2015 9:57 pm

Issuing bank can never be a confirming bank

article "8" is the proof for it


its a separate irrevocable undertaking by another bank

RAKESHCH
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Can Issuing Bank Be Confirming Bank Also

Post by RAKESHCH » Thu Mar 12, 2015 8:45 pm

issuing can never be a confirming bank

its a separate undertaking of a separate bank.

article 8 justifies

thutrang9591
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Never

Post by thutrang9591 » Sun Mar 22, 2015 3:47 pm

Issuing bank never become confirming bank because it is ultimately responsible for payment under L.C

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