Letter of Credit Forum

Article 10 a - c UCP 600 repeats with small stylistical modifications the provision of Article 9 d(i) to (ii) UCP 500. Still, a credit can not be amended or cancelled without the agreement of the consent of the issuing bank, the confirming bank, if any, and the beneficiary. 

As a result: a nominated bank, which has not confirmed the letter of credit, cannot object to the cancellation of its role as nominated bank. It has to follow these instructions from the issuing bank, even if these instructions constitute a breach of contract in the relation between issuing bank and beneficiary. 

 The national committees discussed the issue how to avoid the limbo if the beneficiary does not react to the advise of an amendment. 

The beneficiary can decide up to the expiration of the credit whether to accept or reject an amendment. "A provision in an amendment to the effect that that the amendment shall enter into force unless rejected by the beneficiary within a certain time shall be disregarded" (see Article 10 f UCP 600). This provision corresponds to Article 9 d (iii) UCP 500. 

 A partial acceptance is considered a rejection of the amendment.