UCP 600 Article 7: Complete Interpretation Guide for Issuing Bank Undertaking

Introduction

UCP 600 Article 7 (Issuing Bank Undertaking) is lettered 7(a), 7(b), 7(c). Banks compile a presentation against those limbs on the face of the documents. First limb: Provided that the stipulated documents are presented to the nominated bank or to the issuing bank and that they constitute a complying presentation, the issuing bank must honour if the credit is available by: i. sight pa

Failure Mode Analysis

Failure mode 1: Skipping the first limb

Operations compile against later limbs and never test 7(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 7(a)?

Provided that the stipulated documents are presented to the nominated bank or to the issuing bank and that they constitute a complying presentation, the issuing bank must honour if the credit is available by: i. sight payment, deferred payment or acceptance with the issuing bank; ii. sight payment with a nominated bank and that nominated bank does not pay; iii. deferred payment with a nominated bank and that nominated bank does not incur its deferred payment undertaking or, having incurred its d

Are letters beyond c part of Article 7?

No. The ICC text letters Article 7 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).