Conclusion
Given the importance and prevalence of nominated banks in letter of credit transac- 4.43
tions, it is rather surprising to find a lack of clarity on the nature of a nominated bank's relationship with the other key actors, namely, the issuing bank and the beneficiary.
Perhaps this stems from the widespread (and possibly universal) usage and acceptance of UCP 600, which sets out many of the rights and obligations of the nominated bank vis-a-vis the issuing bank and the beneficiary (but not the nature of the relationship), such that there is seldom a need to go beyond the text of UCP 600. Where UCP 600 is silent, however, issues arise. In that regard, to the extent that it is necessary to resolve the issues at hand, the Singapore and English courts have been prepared to go beyond the text of UCP 600 (as in Fortis Bank and Grains), but such endeavours should, for the reasons stated above, be only where absolutely necessary and consistent with the terms of UCP 600.
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