Mr Old Man Payment Q&A LC CONFIRMED BY THE FIRST ADVISING BANK By Mr Old Man Posted on September 15, 2013 2 min read 9 1 30,384 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, I follow up your blog and see it very helpful. I have a question for you. Bank B sent Bank C an MT 710 showing some details as follows: Field 40B (Form of Documentary Credit): IRREVOCABLE ADDING OUR CONFIRMATION Field 52A (ISSUING BANK): BANK A Field 41A: (Available with … by): BANK B BY NEGOTIATION Field 49 (Confirmation instructions): WITHOUT Is this a confirmed or unconfirmed LC? Should the beneficiary present the documents to Bank A or Bank B? Thank you very much Best regards, LT —————- ANSWER Hi, Field 40B of MT 710 specifies the type of LC and whether or not the Sender is adding its confirmation to the LC. It is understood from your description that the Sender (Bank B) added its confirmation to the LC and advised it to the beneficiary through Bank C by MT 710. Field 49 (Confirmation Instructions) indicating WITHOUT implies that the Receiver (Advising Bank) is not requested to confirm the LC. In your case Bank C is not requested to add its confirmation to the LC (as indicated in Field 40B the LC was confirmed by Bank B). According to Article 6 UCP 600, the beneficiary may present the documents directly to the issuing bank (Bank A). However, it is advisable for the beneficiary to present the documents to the confirming bank (Bank B) through Bank C. Kind regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?