UCP 600 Article 12: Complete Interpretation Guide — Nomination
Introduction
UCP 600 Article 12 (Nomination) is lettered 12(a), 12(b), 12(c). Banks compile a presentation against those limbs on the face of the documents. First limb: Unless a nominated bank is the confirming bank, an authorization to honour or negotiate does not impose any obligation on that nominated bank to honour or negotiate, except when expressly agreed to by that nominated bank
Failure Mode Analysis
Failure mode 1: Skipping the first limb
Operations compile against later limbs and never test 12(a). The first limb is not optional. A presentation that violates it is a binary reject.
Applying the article
Read the limbs above as they stand in the ICC text. Do not import sub-articles from another article. Document examination remains UCP 600 Article 14: on the face of the documents, within five banking days following the day of presentation.
Conclusion
Use the article as printed. If a lettered sub-article is not in the text above, it is not part of the rule.
FAQ
What is Article 12(a)?
Unless a nominated bank is the confirming bank, an authorization to honour or negotiate does not impose any obligation on that nominated bank to honour or negotiate, except when expressly agreed to by that nominated bank and so communicated to the beneficiary.
Are letters beyond c part of Article 12?
No. The ICC text letters Article 12 as (a), (b), (c) only.
Does a five-day waiver request extend examination?
No. Article 16(b) states that approaching the applicant for a waiver does not extend the period in Article 14(b).
Article 16(b) states that approaching the applicant for a waiver does not extend the period in Article 14(b).
| Regulation | Article / Section | Requirement | Consequence |
|---|---|---|---|
| UCP 600 | Article 12 | Nomination | Binary determination (compliant/discrepant) |
| UCP 600 | Article 14 | Standard for Examination of Documents | Binary determination (compliant/discrepant) |
| UCP 600 | Article 16 | Discrepant Documents, Waiver and Notice | Binary determination (compliant/discrepant) |
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Quick Reference Summary
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