Problem: On 5 February an irrevocable letter of credit for USD 600,000 is confirmed by Advising Bank. On 20 February of the same calendar year, Advising (now also Confirming Bank) receives an amendment cancelling the letter of credit which it advises to the beneficiary. As at 21 February, if no documentary presentation has been made and the letter of credit remains in force and allows a complying presentation by Beneficiary, what is the liability of both banks?
Issuing and confirming bank - USD 0
Issuing and confirming bank USD 600,000
Issuing bank - USD 0 Confirming bank - USD 600,000
Issuing bank - USD 600,000 Confirming bank - USD 0