Mr Old Man Payment Q&A BRANCHES OF A BANK IN THE SAME COUNTRY By Mr Old Man Posted on 4 hours ago 4 min read 0 0 8 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Intro There have been cases where an issuing bank refused to honour a credit on the grounds that the beneficiary presented the documents at a branch other than the branch expressly nominated in the LC, even though both branches belong to the same bank and are located in the same country. In such cases, the beneficiary is unable to re-present the documents at the correct nominated branch because the LC has already expired. This raises an important question: Are branches of the same bank within the same country considered one bank for the purposes of LC presentation? Instead of answering directly, Mr. Old Man shared the following Q&A with the inquirer, providing a solid basis to challenge the issuing bank’s refusal. QUESTION Dear Mr. Old Man, The LC states in Field 41A: AVAILABLE WITH ABC BANK, DA NANG BRANCH BY NEGOTIATION May the beneficiary present documents to ABC BANK, HO CHI MINH CITY BRANCH for negotiation? A quick reply would be appreciated. H. ______ ANSWER Dear H., Branches of the same bank located in the same country are considered to be one bank for the purposes of UCP 600. Article 3 of UCP 600 clearly states that branches of a bank in different countries are considered to be separate banks. It follows, therefore, that branches of a bank in the same country are considered to be the same bank. Both ABC BANK, DA NANG BRANCH and ABC BANK, HO CHI MINH CITY BRANCH are located in Vietnam. Accordingly, they are considered to be the same bank under UCP 600. The beneficiary may present documents for negotiation to either branch. For further reference, ICC Opinion R387 states: “Branches of the same bank in the same country are considered to be the same bank. If a letter of credit is stated to be available with Bank X, Branch Y, in Country Z, then the documents may be negotiated by that particular branch or any other branch of that bank in Country Z.” This ICC Opinion is fully consistent with the interpretation of Article 3 of UCP 600. I hope this clarifies your question. Best regards, Mr. Old Man P/s: Please also refer this Q&A : https://mroldman.net/branches-bank-different-countries-separate-banks/