CREDITS AND CONTRACTS IN UCPDC

Credits, by their nature are separate transactions from the sales or other contract’s on which they may be based and banks are in no way concerned with or bound by such contract’s, even if any reference whatsoever to such contract’s is included to the credit. Consequently, the undertaking of a bank to pay, accept and pay. Draft’s or negotiate and/or to fill any other obligation under the credit is not subject to claims or defences by the applicant resulting from his relationships with the issuing bank or the beneficiary.