Is confirming bank always bound to examine the document

berry · Post by **berry** » Sat Dec 12, 2009 1:18 pm

we know that a confirming bank may not be a nominated bank by which i understand that credit may not be available with the confirming bank. now if a credit is not available with a bank, there is no reason to present document to that bank and if presented the document wont be examined under UCP 600. if this is correct then article 14 says

a. A nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank must examine a presentation...

this seems to be so unconditional and appears that confirming bank has to examine document in any situation.

jaysatish · Post by **jaysatish** » Sat Dec 12, 2009 9:35 pm

Its a debatable topic. As said by you the UCP article does suggest that the documents must be presented to the confirming bank. Actually the practice is that while confirming the credit the confirming bank would request issuing bank to restrict the credit to themselves.The other best way to avoid dispute is to ensure that we state in our confirmation advice to beneficiary that " Confirmation is valid provided documents are presented to us."