MT700 Field 42C: Relationship with UCP
Introduction
Field 42C expresses the draft tenor in an MT700 and is governed as much by UCP 600 as by SWIFT syntax. The connection is not decorative: UCP 600 supplies the legal meaning of availability and honour, while SWIFT rule C3 supplies the only field combinations in which 42C may appear. A 42C entry that ignores either framework is non-operable.
Failure Mode Analysis
Failure Mode 1: 42C used outside the draft route
The credit is by negotiation or mixed payment, yet 42C is populated. Rule C3 rejects the combination (C90) and UCP Article 6 cannot apply a draft tenor to a non-draft availability.
Failure Mode 2: Tenor absent from a draft credit
A draft-based credit leaves 42C empty. Article 6's requirement for a stated tenor is unmet and the draft has no maturity.
Failure Mode 3: Tenor changed without amendment
A party treats the tenor as altered by instruction. Article 10 requires a formal amendment; the SWIFT field does not self-update.
Failure Mode 4: Undertaking mismatch
The issuing bank's Article 7 honour and any confirming bank's Article 8 undertaking reference a tenor not present in 42C, leaving the obligation undefined.
Failure Mode 5: Cross-field date conflict
The 42C maturity is inconsistent with the shipment or presentation dates, so the draft can never be presented complying.
Deterministic Resolution Architecture
- Determine the availability method before field population.
- For drafts, complete 42C and 42a and leave 42M/42P empty.
- Encode the tenor in 42C's defined format rather than prose.
- Validate the combination under rule C3 to clear C90.
- Align the 42C tenor with the Article 6 availability statement.
- Process tenor changes only through Article 10 amendments.
- Bind the Article 7 (and where relevant Article 8) undertaking to the encoded tenor.
- Reconcile the tenor with the 44-series dates and the presentation period.
- Keep the operative 42C value under version control for examination.
Conclusion
Field 42C is the SWIFT representation of the UCP 600 draft tenor. It is valid only with 42a and within the single availability structure permitted by rule C3. The legal effect flows from Article 6 (availability), Article 10 (amendment), and Articles 7–8 (undertakings). A conforming 42C is complete, rule-compliant, and changed only by amendment.
FAQ
What is the UCP basis for 42C?
Article 6 (Availability), with amendment under Article 10 and undertakings under Articles 7–8.
Must 42C be accompanied by another field?
Yes. Rule C3 requires 42C together with 42a.
Can 42C stand where the credit is by negotiation?
No. Use 42P alone; 42C belongs to the draft route.
Does UCP let the applicant change the tenor directly?
No. Article 10 requires an advised amendment.
Why does the confirming bank care about 42C?
Article 8 ties the confirmation to the stated availability, including the tenor.
What error signals a bad 42C combination?
C90 under rule C3 flags the forbidden combination.
Source Notes
- Context only: SWIFT SR2018 Category 7, MT700 field 42C and network rule C3 (C90).
- Context only: UCP 600 Articles 6 (Availability), 10 (Amendments), 7–8 (Issuing/Confirming Bank Undertakings).
Article 10 requires a formal amendment; the SWIFT field does not self-update.
| Regulation | Article / Section | Requirement | Consequence |
|---|---|---|---|
| UCP 600 | Article 6 | Availability, Expiry Date and Place for Presentation | Binary determination (compliant/discrepant) |
| UCP 600 | Article 10 | Amendments | Binary determination (compliant/discrepant) |
| UCP 600 | Article 7 | Issuing Bank Undertaking | Binary determination (compliant/discrepant) |
| UCP 600 | Article 8 | Confirming Bank Undertaking | Binary determination (compliant/discrepant) |
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Quick Reference Summary
- No reference captured.
Compliance Checklist
| ✓ What Banks Expect | ✗ What Beneficiaries Often Do Wrong |
|---|---|
| 42C used outside the draft route | The credit is by negotiation or mixed payment, yet 42C is populated. Rule C3 rejects the combinat... |
| Tenor absent from a draft credit | A draft-based credit leaves 42C empty. Article 6's requirement for a stated tenor is unmet and th... |
| Tenor changed without amendment | A party treats the tenor as altered by instruction. Article 10 requires a formal amendment; the S... |
| Undertaking mismatch | The issuing bank's Article 7 honour and any confirming bank's Article 8 undertaking reference a t... |
| Cross-field date conflict | The 42C maturity is inconsistent with the shipment or presentation dates, so the draft can never ... |
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