MT700 Field 42A Relationship with UCP 600 Articles

Introduction

Field 42A (Drawee) names the party on whom drafts under the credit are to be drawn. Under UCP 600, the way a credit is available and the issuing bank's undertaking define who bears the payment obligation. Reading 42A through those articles clarifies why the drawee must be a valid party and why the field is conditional on the draft structure.

Failure Mode Analysis

Failure Mode 1: Draft structure incomplete

Field 42A is present but 42C is missing, breaching rule C2. Article 6 availability by draft needs both fields.

Failure Mode 2: Wrong payment combination

Field 42A appears with 42M or 42P instead of 42C+42a, contrary to rule C3.

Failure Mode 3: Invalid drawee BIC

The 42A Identifier Code is not a registered financial-institution BIC (T27/T28/T29/T45) or not a financial-institution BIC (C05), so the drawee is not a valid party.

Failure Mode 4: Drawee outside availability

Field 42A names a drawee inconsistent with the 41A available-with bank/method, undermining the Article 6 availability statement.

Failure Mode 5: Undertaking mismatch

Because Article 7 ties honour to the stated availability, a misstated 42A drawee creates uncertainty about which party's engagement applies.

Deterministic Resolution Architecture

1. Decide whether the credit is available by draft; if so, 42A must accompany 42C under rule C2.
2. Confirm the payment structure follows rule C3 (42C+42a, 42M alone, or 42P alone).
3. Validate the 42A Option A BIC as a registered financial-institution BIC; resolve T27/T28/T29/T45 and C05.
4. Align the 42A drawee with the 41A availability bank/method under Article 6.
5. Verify the 42A presence matches the 40A credit form.
6. Use Option D only with a clear party identifier when no BIC applies.
7. Apply Article 7 to confirm the honour undertaking fits the stated availability.
8. Correct the message if C2/C3 or BIC validation fails.

Conclusion

Field 42A (Drawee) is the conditional party on which drafts are drawn, governed by rules C2 and C3 and BIC validity. Under UCP 600 Articles 6 and 7, its presence must match the availability-by-draft structure and the issuing bank's undertaking, with a valid financial-institution BIC.

FAQ

What is field 42A? The SWIFT MT700 Drawee field, conditional under rules C2 and C3.

Which UCP articles relate to 42A? UCP 600 Article 6 (availability) and Article 7 (issuing bank undertaking).

When must 42A be present? When drafts are used, together with field 42C (rule C2).

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

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

Why validate the drawee? A valid financial-institution BIC ensures the draft is drawn on a proper party under the stated availability.

Source Notes

• Context only: SWIFT SR2018 Category 7, MT700 field 42A (Drawee), Option A / Option D; conditional under C2, C3; BIC rules T27, T28, T29, T45, C05.
• Context only: UCP 600 Article 6 (availability) and Article 7 (issuing bank undertaking).
• Source dossier field_contexts for field 42A; UCP 600 text cited by article number.