How to Determine What Constitutes a Banking Day

The definition of “Banking Day” in UCP600 Article 2 ¶ 3 requires interested and affected parties to look outside the terms of the UCP to determine what days are actually banking days. Occasionally, a letter of credit will provide information about what constitutes a banking day, but in most cases this information must be obtained from the bank itself. There is no standard means of obtaining such information and, because of the frequent differentiation between wholesale and retail operations, there is a possibility of confusion.

Although this potential for confusion is greater with respect to banking hours, it is possible that inconsistent information will be provided by a bank. Were a dispute to arise in such a case, a factual question would arise as to what constituted a banking day at the relevant bank. Where the beneficiary was able to prove that there was inconsistent information provided by the bank, that most favorable to the beneficiary may be taken by a court as to whether a given day is or is not a banking day.

(Excerpt from: James E. Byrne, et al., UCP600: AN ANALYTICAL COMMENTARY (IIBLP, 2010), p. 61.)