Hi to everyone,

Article 37(c) says "An issuing bank or advising bank assumes no liability or responsibility should the instructions it transmits to another bank not be carried out,even if it has taken the initiative in the choice of another bank."

Article 7 which mentions about the issuing bank undertaking to honour as of the time it issues the credit.2)sight payment/deffered payment/acceptance with a nominated bank and that nominated bank does not pay...

My questions are

1)Isn't the above two statements contradictory.The first absolves the issuing bank whereas the second makes the issuing bank liable.Suppose what if the confirming bank refuses to honour the complying presentation.....

Can anyone please clarify?