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Article Relevant quote Description
Article Credits
VS A credit (LC) by nature is
a separate transaction
from the sale or other
contract on which it may
be used

Article Documents VS
goods, services

documents and not with
performance to which
the documents may

Remarks, if any
Undertaking of a bank
to honor, to negotiate
or fulfill any other
obligation under the
credit is not subject to
terms of the sale
Banks are not bound by
any dispute in respect
of the quantity or
quantity of goods/

the issuing bank must honour if the credit is available by sight payment. deferred payment or acceptance with the issuing bank Article Advising of By advising the credit or 9 Credits and amendment. the advising bank signifies that it has satisfied itself as to the apparent authority of the LC/ amendments.Article Issuing Bank Provided that the 7 Undertaking stipulated documents are presented to the nominated bank or to the issuing bank and that they constitute a complying presentation. . the Amendments advising bank signifies that it has satisfied itself as to theapparent authenticity of the credit Issuing Bank is not bound by any other consideration/ instruction from parties to the LC By advising the LC.

a irrevocably bound by an credit can neither be amendment as of the amended nor cancelled time it issues the without theagreement amendment . Except as otherwise An issuing bank is provided by article 38.Article Amendments 10 or amendment and that the advice accurately reflects the terms andconditions of the credit or amendment received. The advising bank cannot be changed A bank utilizing the midcourse subsequent services of an advising to issue of LC/ bank or second advising amendment unless and bank to advise a credit otherwise the advising must use thesame bank bank choose not to do to advise any so amendment thereto.

if any. The beneficiary should and the beneficiary give notification of acceptance or rejection Aconfirming bank may of an amendment. a advises the Amendment. the confirming bank. . extend its confirmation to an amendment and If the beneficiary fails will be irrevocably to give such bound as of the timeit notification. choose to yet accepted advise an amendment amendment will be withoutextending its deemed to be confirmation and.of the issuing bank. presentationthat complies with the A confirming bank may. it notification of must inform the issuing acceptance by the bank without delay and beneficiary of such inform thebeneficiary in amendment. if so. credit and to any not however.

its advice. it must Failure to do so will render the documents to be in order and the banks involved need to honour the documents as if they are complying documents Advising bank/ negotiating bank/ nominated bank/ confirming Bank shall pay. accept and forward the documents to the issuing bank with . a Documents confirming bank. Article Standard for A nominated bank acting 14 Examination of on its nomination. if any. and the issuing bank shall eachhave a maximum of five banking days following the day of presentation to determine if a presentation iscomplying Article Complying When an issuing bank/ 15 Presentation advising bank/ negotiating bank/ nominated bank determines that a presentation is complying.

approach the applicant for a waiver of the discrepancies.honour. the presenter. in its sole judgement. it must give a single notice to that effect to This does not. extend the periodmentioned in If an issuing bank or a Article 14 confirming bank fails to act in accordance with the provisions of this article. however. it may. if any. determines that a Waiver and presentation does not Notice comply. it shallbe precluded from claiming that the . Article Discrepant When an issuing bank 16 Documents. a certification. When a nominated bank acting on its nomination. or the issuing bank decidesto refuse to honour or negotiate. a confirming bank.

an insurance certificate or a declaration under an open cover is acceptable Date of insurance document should not be later than the date of .documents do not constitute a complying presentation. Article Insurance When the insurance 28 document and document indicates that coverage it has been issued in more than one original all originals must be presented An insurance policy.

(Public Holidays or Sundays) the expiry date orthe last day for presentation. a nominated bank must provide the issuing bank or confirming bank with a statement on its covering schedule that the presentation was made within the time limits. when the bank to which presentation is to be made is closed for reasons other than those referred to in article 36.Article Expiry date of 29 a credit or the last day for presentation of documents for negotiation shipment unless it appears from the insurance document that the insurance cover is effective not later than the date of shipment If the expiry date of a credit or the last day for presentation falls on a day. as the case may be. The latest date for . will be extended If presentation is made on the first following banking day.

of terrorism. wars. extended as a result of sub-article 29 (a) Article Force Majeure A bank assumes no A bank will not. acts business. during such riots. . civil commotions. upon 36 liability or responsibility resumption of its for the consequences business. or by any strikes or lockouts or any other causes beyond its control. Interruption of its the first following shipment will not be banking day. honour or arising out of the negotiate under a interruption of its credit that expired business by Acts of God.