Published on Letter of Credit Forum (http://letterofcreditforum.com)

UCP 600 Article 9: Advising of Credits

By admin
Created 01/14/2009 - 14:01
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".

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