UCP 600 Article 36 (Force Majeure): Amendment Implications

Introduction

When a force majeure event interrupts a bank's operations, the resulting disruption can force parties to reconsider the terms of the documentary credit. Article 36 provides that the bank assumes no liability for consequences of the interruption and that credits expired during the interruption are not revived. The natural response for a beneficiary or applicant is to seek an amendment — extending the expiry date, adjusting the shipment period, or modifying other terms to account for the disruption. But Article 36 does not itself authorize amendments. It is a defensive provision: it shields the bank. Amendments are governed by Article 10, which requires issuer agreement and beneficiary acceptance. The interaction between Article 36 and Article 10 creates a procedural pathway that parties must follow precisely to preserve their rights.

Failure Mode Analysis

Failure 1: Applicant demands amendment without issuing bank cooperation. Article 10 requires the issuing bank to issue the amendment. The applicant cannot unilaterally extend the credit after an Article 36 event.

Failure 2: Beneficiary treats silence as acceptance of amendment. Under Article 10(f), silence does not constitute acceptance. The beneficiary must expressly accept or reject the amendment.

Failure 3: Amendment issued but credit already expired during interruption. If the credit expired during the Article 36 interruption, the amendment must be issued before expiry. An amendment issued after expiry does not revive the expired credit.

Failure 4: Amendment changes terms inconsistent with original documents. After an amendment, the beneficiary must present documents consistent with the amended terms. Original documents that matched the original credit may now be discrepant under the amended terms.

Failure 5: Confirming bank not informed of amendment. Under Article 10, if the credit is confirmed, the confirming bank must be informed of the amendment. Failure to advise the amendment may leave the confirmation in place under the original terms.

Deterministic Resolution Architecture

1. Determine whether the credit expired during the interruption. If the credit expired, Article 36 applies: reopening does not require honour or negotiation. The parties must seek an amendment.

2. Initiate the amendment process under Article 10. The applicant requests the issuing bank to issue an amendment. The issuing bank decides whether to issue it.

3. If confirmed, advise the confirming bank. The issuing bank must ensure the confirming bank is advised of the amendment under Article 10(b).

4. Beneficiary accepts or rejects the amendment. Under Article 10(f), the beneficiary must expressly accept or reject. Silence is not acceptance.

5. If accepted, present documents against amended terms. The beneficiary must present documents consistent with the amended credit, not the original credit.

6. If rejected, the credit remains on original terms. If the beneficiary rejects the amendment, the original credit terms apply (subject to the Article 36 interruption analysis).

7. Document the amendment process. Record the amendment number, date, terms changed, beneficiary acceptance, and presentation against amended terms. Preserve the record.

Conclusion

Article 36 provides a defensive shield for the bank during force majeure interruptions. It does not authorize amendments. When a credit expires during an interruption, the parties must use the Article 10 amendment process: the issuing bank issues the amendment, the beneficiary accepts or rejects, and documents are presented against the amended terms. The defensible method is a documented amendment process that tracks the interruption, the amendment issuance, the beneficiary's response, and the presentation against the amended credit.

FAQ

Can the applicant extend the credit after an Article 36 event? The applicant may request the issuing bank to issue an amendment under Article 10. The issuing bank decides whether to issue it. The applicant cannot unilaterally extend the credit.

Does silence constitute acceptance of an amendment? No. Under Article 10(f), the beneficiary must expressly accept or reject the amendment. Silence does not constitute acceptance.

What if the credit expired during the interruption and no amendment is issued? Article 36 applies: reopening does not require honour or negotiation under the expired credit. The beneficiary may have remedies under the underlying contract.

Does the confirming bank need to agree to the amendment? The confirming bank is advised of the amendment under Article 10(b). The confirming bank may choose to confirm the amended credit or withdraw its confirmation.

How does eUCP apply to amendments during force majeure? Under eUCP Version 2.1, Article e8, the same Article 36 and Article 10 principles apply to electronic presentations. The amendment process is identical.

Source Notes

Context only — no deep source text was extracted from the original research feeds.

• ICC Academy, "Uniform Rules for Documentary Credits (UCP 600) — eBook," published 12 Dec 2024.
• ICC, "UCP 600 — Uniform Rules and Practice for Documentary Credits — Including eUCP Version 2.1," published 31 Jul 2023.
• ICC, "Commentary on UCP 600," published 01 Aug 2019.
• ICC Academy, "Certified UCP 600 Specialist (CUCP)," published 12 Jul 2025.
• ICC Academy, "ICC Uniform Rules for Demand Guarantees (URDG 758) — eBook," published 12 Dec 2024.