GHUBSHAWI'S QUERY
Dear All,
Can the L/C be available with the confirming bank, in case the nominated bank is other than the confirming bank?
If no, what is the point for the confirming bank to add it's confirmation for an instruement not available with him?
Please help with your comments.
Best,
Ghubshawi
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COMMENT
Based on Art. 6 (a) which says a credit available with a nominated bank is also available with the issuing bank, I just add that a credit available with another nominated bank is also available with the confirming bank.
Ghubshawi, you should refer more to the confirming bank undertaking in Art. 8 (a) (i) which says that the confirming bank is liable to honour if the credit is available by sight payment/deferred payment/acceptance/negotiation with another nominated bank and that nominated bank does not pay/does not incur its deferred payment undertaking or, having incurred its deferred payment undertaking, does not pay at maturity/does not accept a draft drawn on it or, having accepted a draft drawn on it, does not pay at maturity/does not negotiate respectively.
Best regards,
Nguyen Huu Duc …
