MT700 Field 58 and Its Relationship with UCP

Introduction

SWIFT MT700 Field 58 designates the confirming bank — the institution that adds its independent, irrevocable undertaking to a documentary credit. This field's relationship with the Uniform Customs and Practice for Documentary Credits (UCP) determines whether the confirmation arrangement is properly established and enforceable.

Failure Modes

1. Field 58 Without Corresponding UCP Article 8 Undertaking
If Field 58 names a bank but that bank has not formally agreed to add its confirmation, the Field 58 designation creates a false impression of confirmation where none exists.

2. Field 58/Article 10 Amendment Consent Failure
When an amendment is issued and Field 58 names a confirming bank that does not consent to the amendment, the confirmation may lapse under Article 10(d) depending on the terms. Field 58's role in the amendment process is often overlooked.

3. Field 58 Contradicts Article 2 Definition
If Field 58 names an institution that does not meet the UCP Article 2 definition of a "bank" (e.g., a non-bank financial institution), the confirmation may be legally questionable.

4. Field 58/Article 12 Interaction Creates Ambiguity
When Field 41 names one nominated bank and Field 58 names a different confirming bank, the relationship between the two banks' obligations under Article 12 may be unclear.

Resolution Steps

1. Obtain explicit confirmation from the Field 58 bank before transmitting the MT700. A confirmed Field 58 designation prevents false-confirmation scenarios.

2. Include Field 58 in the amendment consent workflow. When issuing MT707 amendments, confirm that the Field 58 bank consents to the amendment before treating the confirmation as active.

3. Verify that the Field 58 institution meets the UCP Article 2 definition of a bank. Non-bank institutions should not be named in Field 58.

4. Map the relationship between Field 41 and Field 58 to clarify each bank's obligations. Document the distinction in the credit file.

5. When Field 58 is removed by amendment, confirm with the beneficiary that the credit is now unconfirmed and assess any impact on the underlying commercial transaction.

6. Establish a Field 58 lifecycle tracking system that records the initial designation, any amendments, and the final confirmation status.

7. Train trade operations staff on the legal significance of Field 58 under the UCP, emphasizing that the field activates a binding undertaking.

Conclusion

Field 58 is the SWIFT mechanism through which UCP 600's confirmation framework is activated for a specific institution. Its proper use requires coordination between the issuing bank, the confirming bank, and the beneficiary. When Field 58 is accurately maintained and aligned with the UCP, it provides the beneficiary with the additional security that confirmation is designed to deliver.

Frequently Asked Questions

Q1: Does UCP 600 require Field 58 to be completed?
No. UCP 600 does not mandate the use of any specific SWIFT field. Field 58 is a SWIFT convention used when the credit is confirmed.

Q2: What is the difference between Field 58 and Field 41?
Field 41 identifies the nominated bank and availability. Field 58 identifies the confirming bank. They may name the same or different institutions.

Q3: Can Field 58 be used to add a partial confirmation?
UCP 600 Article 8 does not contemplate partial confirmations. Field 58 identifies the confirming bank, and the confirmation applies to the entire credit amount.

Q4: How does Field 58 interact with standby letters of credit?
Standby letters of credit may be subject to ISP98 rather than UCP 600. Field 58 in an MT760 (standby LC) follows similar principles but under a different rule set.

Q5: Can the beneficiary request a change to Field 58?
The beneficiary cannot directly amend Field 58. Changes to Field 58 require an MT707 amendment issued by the issuing bank, with consent from the new confirming bank.

Source Notes

The following sources were consulted as context only:

• Trade Finance Global, "UCP 600 – ultimate 2026 guide" (Jun 2020)
• Trade Finance Global, "Understanding MT 720: transfer of a documentary credit" (Jun 2024)
• Trade Finance Global, "SWIFT Messaging Types | TFG 2026 Guide" (Apr 2020)
• ICC, "ICC's new rules on documentary credits now available" (Mar 2023)
• Trade Finance Global, "Modifications and exclusions in commercial Letters of Credit Issued under UCP 600" (Oct 2021)