Advising Bank

bdesh · Post by **bdesh** » Sat Jun 20, 2009 5:15 pm

Dear all,
Art. 2 of UCP-600 states "Advising bank means the bank that advises the credit at the request of the issuing bank".
.
Does it mean that issuing bank need to request another bank to have the LC advised i.e. Issuing Bank cannot advise the credit issued by itself?
.
Regards

berry · Post by **berry** » Sat Jun 20, 2009 6:08 pm

Dear bdesh

an issuing bank can advise a credit by itself. UCP 600 article 9 says

Advising of Credits and Amendments

a. A credit and any amendment may be advised to a beneficiary through an advising bank. An advising bank that is not a confirming bank advises the credit and any amendment without any undertaking to honor or negotiate.

that means its not compulsory to use an advising bank.

narisa · Post by **narisa** » Sat Jun 20, 2009 10:04 pm

hi! Bdesh

I agree with berry
It would be cleary in case domestic lc which issuing bank is in the same country with beneficiaryso they can advice credit by themselves to bene.

regards.