MT700 Field 42A Field Contradicts Other Fields

Introduction

Field 42A (Drawee) identifies the party on whom drafts under the credit are to be drawn. Because it is conditional and tied to the draft and availability fields, it must agree with the credit form, the availability method, and the payment-detail fields. A contradiction involving 42A is a structural defect that produces disputed drafts and refusal risk.

Failure Mode Analysis

Failure Mode 1: 42A present without 42C

Field 42A (Drawee) appears but field 42C (Drafts at …) is missing. Rule C2 requires both when used, so the combination is invalid.

Failure Mode 2: 42A used with 42M or 42P

Field 42A appears while 42M or 42P is present instead of 42C+42a. Rule C3 permits only the allowed combinations, so 42A is misplaced.

Failure Mode 3: Invalid BIC

The Identifier Code in 42A Option A is not a registered financial-institution BIC, raising T27/T28/T29/T45, or is not a financial-institution BIC, raising C05.

Failure Mode 4: 42A conflicts with 41A availability

Field 42A names a drawee that does not match the available-with bank or method in 41A, leaving unclear where drafts are payable.

Failure Mode 5: 42A conflicts with 40A form

Field 40A states a form (for example, a credit available by payment without drafts) while 42A is present, contradicting the stated structure.

Deterministic Resolution Architecture

1. Determine whether drafts apply; if so, 42A must appear with 42C under rule C2.
2. Confirm the 42C + 42a combination matches rule C3 (not 42M or 42P).
3. Validate the 42A Option A Identifier Code as a registered financial-institution BIC; clear T27/T28/T29/T45 and C05 errors.
4. Check that 42A's drawee is coherent with the 41A available-with bank/method.
5. Verify 42A is consistent with the 40A credit form.
6. Use Option D name and address only when no valid BIC is appropriate, with a clear party identifier.
7. Cross-check 42a presence and the draft tenor in 42C.
8. Return the message for correction if any C2/C3 or BIC error is raised.

Conclusion

Field 42A (Drawee) is conditional and must follow rules C2 and C3: present with 42C, never with 42M or 42P, and carrying a valid financial-institution BIC. A contradiction with 41A availability, 40A form, or the draft fields is resolved by enforcing the permitted combination and validating the BIC.

FAQ

What is field 42A? The SWIFT MT700 Drawee field identifying who drafts are drawn on, conditional under C2/C3.

When must 42A appear? When drafts are used, with field 42C, per rule C2.

Can 42A appear with 42M or 42P? No. Rule C3 allows only 42C+42a, 42M alone, or 42P alone.

What BIC rules apply? The Identifier Code must be a registered financial-institution BIC (T27/T28/T29/T45) and a financial-institution BIC (C05).

Does 42A relate to 41A? Yes. The drawee should be coherent with the 41A available-with bank and method.

Can 42A conflict with 40A? It can; a form without drafts contradicts a present 42A and must be corrected.

Source Notes

• Context only: SWIFT SR2018 Category 7, MT700 field 42A (Drawee), Option A [/1!a][/34x] 4!a2!a2!c[3!c] / Option D 4*35x; conditional under C2, C3; BIC rules T27, T28, T29, T45, C05.
• Context only: UCP 600 Article 6 (availability) and Article 7 (issuing bank undertaking), cited as the relationship basis.
• Source dossier field_contexts for field 42A; SWIFT spec and UCP articles cited by number, not reproduced at length.