This article covers a number of issues in respect of the examination of electronic or mixed presentations, including the examination of electronic records contained on external systems, and the inability of a bank to examine an electronic record.
It should be noted that UCP 600 sub-article 14 (a) (Standard for Examination of Documents) still applies in respect of a bank's obligation to ascertain whether or not a presentation is complying.
Sub-article e7 (a) highlights that the time for the examination of documents does not commence until the notice of completeness is received.
Sub-article e7 (b) refers to external sources for the origination of data or information, and confirms that such external sources can be used, and that a bank must examine the external source indicated in a document in order to examine the presentation correctly. It further addresses the result of any failure by the eternal source to provide access, in that it shall constitute a discrepancy.
Sub-article e7 (c) makes it clear that if a bank is unable to examine an electronic record in the format that has been allowed by the credit (or in the case of no format having been stated, in any format), this is not a basis for refusal.
Sub-article e7 (d) states that the forwarding of electronic records by a nominated bank indicates that this bank is satisfied as to the apparent authenticity of the electronic records. It is very important to note once the nominated bank has forwarded compliant electronic records to the confirming (or issuing) bank, this obligates the confirming (or issuing) bank to honour, even if they themselves are unable to access any stated external source.