Int'l Rules - Trade‎ > ‎UCP 600‎ > ‎B. Liability‎ > ‎

Article 08

Confirming Bank Undertaking

a.     Provided that the stipulated documents are presented to the confirming bank or to any other nominated bank and that they constitute a complying presentation, the confirming bank must:

i.     honour, if the credit is available by

a.     sight payment, deferred payment or acceptance with the confirming bank;

b.     sight payment with another nominated bank and that nominated bank does not pay;

c.     deferred payment with another nominated bank and that nominated bank does not incur its deferred payment undertaking or, having incurred its deferred payment undertaking, does not pay at maturity;

d.     acceptance with another nominated bank and that nominated bank does not accept  a draft drawn on it or, having accepted a draft drawn on it, does not pay at maturity;

e.     negotiation with another nominated bank and that nominated bank does not negotiate.

ii.     negotiate, without recourse, if the credit is available by negotiation with the confirming bank.

b.     A confirming bank is irrevocably bound to honour or negotiate as of the time it adds its confirmation to the credit.

c.     A confirming bank undertakes to reimburse another nominated bank that has honoured or negotiated a complying presentation and forwarded the documents to the confirming bank. Reimbursement for the amount of a complying presentation under a credit available by acceptance or deferred payment is due at maturity, whether or not another nominated bank prepaid or purchased before maturity. A confirming bank's undertaking to reimburse another nominated bank is independent of the confirming bank’s undertaking to the beneficiary.

d.     If a bank is authorized or requested by the issuing bank to confirm a credit but is not prepared to do so, it must inform the issuing bank without delay and may advise the credit without confirmation.