UCP 600 Article 36 (Force Majeure): Examination Checklist

Introduction

When a force majeure event interrupts a bank's operations, the examination of documents on resumption requires a structured, documented process. UCP 600 Article 36 provides the legal framework, but the bank must still execute a systematic examination to determine whether the presentation is complying. This checklist provides the operational steps a bank must follow when examining a presentation after an Article 36 interruption, covering event classification, timeline documentation, credit-status analysis, document examination, and refusal or acceptance decisions.

Failure Mode Analysis

Failure 1: Skipping event classification. The bank applies Article 36 without first verifying that the event qualifies. This creates legal exposure if the event does not meet the Article 36 requirements.

Failure 2: Not documenting the timeline. Without a documented chronology, the bank cannot demonstrate that it applied the correct provision. This is the most common audit finding.

Failure 3: Failing to distinguish Article 36 from Article 29. The bank applies Article 36 to an ordinary closure, incorrectly suspending examination.

Failure 4: Refusing immediately on resumption. The bank refuses the presentation without completing the five-day examination period under Article 14(b).

Failure 5: Not checking confirming-bank status. The bank fails to determine whether the credit was confirmed and whether the confirming bank already honoured.

Deterministic Resolution Architecture

1. Step 1 — Classify the event. Verify the cause (Acts of God, riots, civil commotion, insurrections, wars, terrorism, strikes, lockouts, or other causes beyond the bank's control). Document the classification.

2. Step 2 — Record the interruption timeline. Record the start date, cause, resumption date, and credit expiry date. Preserve the chronology.

3. Step 3 — Determine the credit's status. Compare the credit expiry date against the interruption period. If the credit expired during the interruption, Article 36 applies: reopening does not require honour or negotiation.

4. Step 4 — If the credit survived, determine the presentation date. If presented before the interruption, the examination period restarts on the first banking day after resumption. If presented after, the presentation date is the date of actual receipt.

5. Step 5 — Examine documents on resumption. Apply Article 14(a) to examine each document on its face. Use the five-day examination period under Article 14(b).

6. Step 6 — Check confirming-bank status. Determine whether the credit was confirmed and whether the confirming bank already honoured. If so, the confirming bank's payment creates an independent obligation.

7. Step 7 — Apply refusal or acceptance. If the presentation is complying, honour or negotiate under Article 7 (issuing bank) or Article 8 (confirming bank). If discrepant, issue a refusal notice under Article 16 within the applicable time limit.

8. Step 8 — Document the result. Record the event classification, timeline, credit status, examination result, and any payment or refusal decision. Preserve the complete record.

Conclusion

This checklist provides a structured, documented process for examining presentations after an Article 36 interruption. The bank must classify the event, record the timeline, determine the credit's status, examine documents on resumption, and apply the correct payment or refusal provision. The defensible method is a documented process that demonstrates the bank applied the correct provision at each step.

FAQ

How long does the bank have to examine documents after resumption? Under Article 14(b), the bank has a maximum of five banking days following the day of presentation (or the first banking day after resumption, if presentation was made during the interruption).

Can the bank refuse immediately on resumption? No. The bank must complete the five-day examination period under Article 14(b) before refusing.

What if the credit expired during the interruption? Article 36 applies: reopening does not require honour or negotiation. The bank communicates this to the beneficiary.

Does the checklist apply to electronic presentations? Yes. Under eUCP Version 2.1, Article e8, the same Article 36 principles apply to electronic presentations.

How does URDG 758 handle the examination after force majeure? Under URDG 758, Article 26, a demand presented during the interruption must be re-presented after resumption. The examining bank applies its ordinary examination procedures to the re-presented demand.

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.