UCP 600 Article 36 (Force Majeure): Notification Requirements

Introduction

When a force majeure event interrupts a bank's operations, notification to the affected parties is a practical necessity — but UCP 600 Article 36 does not prescribe a formal notification procedure. The article's text focuses on the bank's disclaimer of liability and the non-revival of expired credits, not on the mechanics of telling the beneficiary, applicant, or confirming bank what happened. This creates a procedural gap that banks must fill with their own policies and procedures. This guide examines what notification obligations exist, how they interact with other UCP provisions, and what documentation the bank should preserve.

Failure Mode Analysis

Failure 1: Bank does not notify the beneficiary of the interruption. While Article 36 does not require formal notification, the beneficiary has a practical need to know that the bank is closed and that the credit may expire during the interruption. Failure to notify creates confusion and may lead to unnecessary disputes.

Failure 2: Bank issues a refusal notice immediately on resumption. The bank must complete the five-day examination period under Article 14(b) before refusing. Issuing a refusal notice immediately on resumption, without examining the documents, is a breach.

Failure 3: Bank notifies only the applicant. If the credit is confirmed, the confirming bank must also be informed of the interruption and its impact on the credit. Failure to notify the confirming bank may leave it uninformed about the credit's status.

Failure 4: Bank's notification is inconsistent with its records. The bank's notification must be consistent with its documented timeline and event classification. An inconsistent notification undermines the bank's position.

Failure 5: Bank relies on oral notification. Oral notification is difficult to document and may not be reliable. Written notification (SWIFT message, letter, or other documented communication) is the standard practice.

Deterministic Resolution Architecture

1. Determine the notification obligation. Article 36 does not prescribe a formal notification requirement. However, practical necessity and good banking practice require the bank to notify affected parties.

2. Identify the parties to be notified. The beneficiary, the applicant, and (if confirmed) the confirming bank should be informed of the interruption and its impact on the credit.

3. Use written notification. Communicate via SWIFT message, letter, or other documented communication. Oral notification is insufficient for audit and legal purposes.

4. Notify promptly on resumption. As soon as the bank resumes operations, notify the affected parties of the interruption and its impact on the credit's expiry and presentation deadlines.

5. If the credit expired during the interruption, communicate the consequence. Inform the beneficiary that Article 36 applies and that the bank is not required to honour or negotiate under the expired credit.

6. If the credit survived, communicate the revised timeline. Inform the beneficiary of the restarted examination period and any adjusted presentation deadlines.

7. Document the notification. Record the date, method, content, and recipients of each notification. Preserve the record with the presentation file.

Conclusion

Article 36 does not prescribe a formal notification procedure, but practical necessity and good banking practice require the bank to notify affected parties promptly on resumption. Written notification via SWIFT, letter, or other documented communication is the standard. The notification must be consistent with the bank's documented timeline and event classification. Banks that fail to notify create confusion, operational risk, and potential legal exposure.

FAQ

Does Article 36 require formal notification? No. Article 36 does not prescribe a formal notification requirement. However, practical necessity and good banking practice require the bank to notify affected parties.

Who should be notified? The beneficiary, the applicant, and (if confirmed) the confirming bank should be informed of the interruption and its impact on the credit.

How should notification be given? Written notification via SWIFT message, letter, or other documented communication is the standard. Oral notification is insufficient for audit and legal purposes.

When should notification be given? As soon as the bank resumes operations. Prompt notification prevents confusion and unnecessary disputes.

Does URDG 758 require notification? URDG 758, Article 26, does not prescribe a formal notification procedure. The same practical considerations apply: prompt, written notification to affected parties.

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.