authenticity of acceptance or deferred payment undertaking

[berry]

dear all,

if an advising bank is not acting on its nomination but forward the documents to the issuing bank and obtain acceptance or deferred undertaking "on behalf" of the beneficiary, does it require to ensure the authenticity of the deferred payment undertaking?

[akomolpa]

In your case, the Advising Bank and Issuing Bank already have exchanged the authenticity key to each other. When IB issued DC to AB, the DC is authenticated, also the acceptance message for deferred payment undertaking from IB to AB is authenticated.

[wongvv]

Hi !
According to Art 9b, it states "by advising the credit or amendment, the advising bank signifies that it has satisfied itself as to the apparent authenticity........". The authenticity of credit has been ensured when the L/C is advised to the beneiciary or second advising bank. Not matter its nomination is acted or not.

V.V.

[iLC]

dear all,

if an advising bank is not acting on its nomination but forward the documents to the issuing bank and obtain acceptance or deferred undertaking "on behalf" of the beneficiary, does it require to ensure the authenticity of the deferred payment undertaking?

as far as an advising (and also nominated) bank is concerned, it has two distinguished rule within UCP. one is to advise the credit and another is to act on its nomination. these two job does not affect each other.

once a credit is advised, the advising job is done. if a advising bank has not acted on its nomination, it then does not matter whether UCP requires authentication of an deferred payment undertaking.

but in my opinion, a bank should always ensure the authenticity of any LC or acceptance. though not under UCP, under local law, it may face problem otherwise.