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March 2021

Recent News

Letters of Credit Are Not Disappearing; They Are Evolving! 24/09/2026

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Lloyds, SocGen turn to eUCP for digital letters of credit 18/09/2026

Société Générale and Lloyds have completed a fully digital trade transaction between the UK and France, using Enigio’s technology, in what the French lender describes as a first-of-its-kind deal...more

Latest Question

We would appreciate your guidance regarding the time period applicable to a transferring bank upon receipt of documents presented by a second beneficiary under a transferred credit subject to UCP 600. The transferred credit contains the following provision: “AFTER SUBSTITUTION OF DOCUMENTS BY THE FIRST BENEFICIARY, WE WILL SEND THE DOCUMENTS TO L/C ISSUING BANK FOR THEIR PAYMENT AND APPROVAL. DISCREPANCY(IES), IF ANY, WILL BE SUBJECT TO THE ACCEPTANCE BY THE ULTIMATE L/C OPENER. ONLY UPON RECEIPT OF PAYMENT FROM L/C ISSUING BANK, WE WILL REMIT PROCEEDS IN SETTLEMENT OF DOCUMENTS PRESENTED BY THE SECOND BENEFICIARY.” Against this background, we would appreciate your guidance on the following: 1. Upon receipt of documents presented by the second beneficiary, how many banking days does the transferring bank have under UCP 600 to examine the presentation and determine whether it is complying? 2. Within that period, what action(s) is the transferring bank required to take under UCP 600 if the second beneficiary's presentation is complying or, alternatively, if it is discrepant? In particular, where discrepancies are identified, is the transferring bank required to give a notice of refusal to the second beneficiary within the time limit prescribed by UCP 600? 3. Does the above clause, concerning subsequent substitution by the first beneficiary and payment to the second beneficiary only after receipt of payment from the issuing bank, affect the time period or obligations applicable to the transferring bank in examining and responding to the second beneficiary's presentation? 4. If the transferring bank does not notify the second beneficiary of discrepancies within the applicable UCP 600 time limit, what is the consequence under UCP 600? Would the transferring bank thereafter be precluded from claiming that the second beneficiary's presentation was discrepant? We would particularly appreciate clarification of the applicable provisions of UCP 600 articles 14, 16 and 38, and any relevant ICC Banking Commission Opinions, DOCDEX decisions or ICC guidance.