Article 9 UCP 600 is a combination of Article 7 and Article 11b UCP 500.
Article 9 however emphasizes stronger than before that a bank advises "without any undertaking to honour or negotiate".
The obligation of the advising bank remain:
1) examine that the credit or an amendment are apparently authentic
(see Article 9 b), and
2) check that the advice "accurately reflects the terms and conditions of the credit or amendment received."
The revision stipulates that the advising bank should satisfy itself
in regards to the apparent authenticity. This language is stronger than Article 7 b UCP 500 which only required that it "shall take reasonable care to check the apparent authenticity of the Credit which it advises".
If the advising bank cannot satisfy itself as to the apparent authenticity of the credit it must inform, without delay, the bank from which the instructions appear to have been received (see Article 9 f UCP 600). The duty to inform without delay applies equally in case a bank asked to advise a credit elects not to do so (Article 9 e UCP 600).
An innovation is the concept of a second advising bank (Article 9 c UCP 600): "An advising bank may utilize the services of another bank".
Comments
First advising bank didn't advise to second advising bank
Dear L/C Specialist,
I have a question regarding to the first advising bank holding L/C without advise L/C to the beneficiary through the second advising bank.
At the beginning of June our issuing bank has sent one L/C to its intermediate bank in Singapore but at the end of June the beneficiary complain they have not been advise. After we check we found out that the first advising bank hold this L/C and try to contract the beneficiary directly event in filed 57D stated clearly about who is the second advising bank. Now, the goods has not produce and the shipment will be delay. Our client will penalty about $5,000.00 coz of this delay. So it’s possible to claim this damage from the first advising bank or claim direct from our issuing bank. Please advise me who will responsible for this damages, and which article state about this responsible in UCP or ISBP.
Thanks for your kindly feedback. I’m looking to hearing from all of you soon.
Best regards,
Issarariddhi,
Iranian L/C
Is there any Chinese banks which can accept L/C from Iranian banks?
If so please let me know the details of the Bank.