What Does a Confirming Bank Do Under a Letter of Credit?
The role and obligations of a confirming bank under UCP 600 Article 8.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
A confirming bank adds its own definite undertaking, in addition to the issuing bank's, to honour or negotiate a complying presentation (UCP 600 Art. 2, 8). Once it confirms, it must pay the beneficiary on compliant documents even if the issuing bank later fails, and negotiation by a confirming bank is without recourse.
| Rule | UCP 600 Art. 8 |
|---|---|
| Obliged to confirm? | No — may decline (Art. 8(d)) |
| Negotiation | Without recourse (Art. 8(a)(ii)) |
Obligations
- Honour or negotiate a complying presentation.
- Examine documents within five banking days.
- Reimburse another nominated bank that has honoured.
For exporters
- Check the bank has actually added confirmation.
- Confirmation may not extend to amendments unless the bank agrees (Art. 10(b)).
Sources
General guidance, not legal advice. Your bank examines documents independently.
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