ucp 600 article 39 assignment of proceeds

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Sunday 11 september 2016, technical paper - assignment of proceeds under letters of credit - ucp600 by lorna pillow, senior vice president, london forfaiting company limited, itfa board member, no comments:, post a comment.

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UCP 600 – Uniform Rules for Documentary Credits

Commercial letters of credit are the lifeblood of international trade. For more than 85 years, the Uniform Customs and Practice for Documentary Credits (UCP) – the International Chamber of Commerce’s rules on documentary credits – have governed letter of credit transactions worldwide. 

UCP 600 contains important new provisions in the fields of transport, insurance and compliance, which will form the basis of letter of credit transactions for years to come. 

The revised UCP includes a “Definitions” article designed to clarify the meaning of key terms, a changed practice for giving a notice of refusal and other modifications you will need to know. 

Since its inception, the UCP has remained a vital component of international trade. Bankers, traders, lawyers, transporters, academics and all who deal with letter of credit transactions will refer to UCP 600 on a daily basis.

Introduction

Article 1:   Application of UCP

Article 2:   Definitions

Article 3:   Interpretations

Article 4:   Credits v. Contracts

Article 5:   Documents v. Goods, Services or Performance

Article 6:   Availability, Expiry Date and Place for Presentation

Article 7:   Issuing Bank Undertaking

Article 8:   Confirming Bank Undertaking

Article 9:   Advising of Credits and Amendments

Article 10:  Amendments

Article 11: Teletransmitted and Pre-Advised Credits and Amendments

Article 12: Nomination

Article 13:  Bank-to-Bank Reimbursement Arrangements

Article 14:  Standard for Examination of Documents

Article 15:  Complying Presentation

Article 16:  Discrepant Documents, Waiver and Notice

Article 17: Original Documents and Copies

Article 18:  Commercial Invoice

Article 19:  Transport Document Covering at Least Two Different Modes of Transport

Article 20:  Bill of Lading

Article 21: Non Negotiable Sea Waybill

Article 22:  Charter Party Bill of Lading

Article 23:  Air Transport Document

Article 24:  Road, Rail or Inland Waterway Transport Documents

Article 25:  Courier Receipt, Post Receipt or Certificate of Posting

Article 26:  “On Deck”, “Shipper’s Load and Count”, “Said by Shipper to Contain” and Charges Additional to Freight

Article 27:  Clean Transport Document

Article 28: Insurance Document and Coverage

Article 29:  Extension of Expiry Date or Last Day for Presentation

Article 30: Tolerance in Credit Amount, Quantity and Unit Prices

Article 31:  Partial Drawings or Shipments

Article 32:  Instalment Drawings or Shipments

Article 33:  Hours of Presentation

Article 34:  Disclaimer on Effectiveness of Documents

Article 35: Disclaimer on Transmission and Translation

Article 36:  Force Majeure

Article 37:  Disclaimer for Acts of an Instructed Party

Article 38:  Transferable Credits

Article 39:  Assignment of Proceeds

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UCP 600 and Letters of Credit | Trade Finance Global 2024 Guide

Ucp600 and letters of credit, ucp 600 (uniform customs & practice for documentary credits) - what does ucp 600 mean, ucp 600 and the letter of credit.

The Uniform Customs & Practice for Documentary Credits (UCP 600) is a set of rules agreed by the International Chamber of Commerce, which apply to finance institutions which issue Letters of Credit – financial instruments helping companies finance trade. Many banks and lenders are subject to this regulation, which aims to standardise international trade, reduce the risks of trading goods and services, and govern trade.

The UCP 600 (“Uniform Customs & Practice for Documentary Credits”) is the official publication which is issued by the International Chamber of Commerce (ICC). It is a set of 39 articles  on issuing and using Letters of Credit, which applies to 175 countries around the world, constituting some $1 trillion USD of trade per year.

What’s the purpose of UCP 600?

The UCP 600 replaced the UCP 500 on the 1st July 2007. It was brought about to standardise a set of rules aiming to benefit all parties during a trade finance transaction. UCP 600 was created by industry experts, and mandated by the Banking Commission, rather than through legislation. The first UCP was created in 1933 and has been revised by the ICC up to the point of the UCP 600.

Is the UCP 600 legally binding?

The UCP 600 rules are voluntarily incorporated into contracts and have to be specifically outlined in trade finance contracts in order to apply. They also allow flexibility for the international parties involved.

An accompaniment to the UCP 600 is the International Standard Banking Practice for the Examination of Documents under Documentary Credits (ISBP), ICC Publication 745. It assists with understanding whether a document complies with the terms of Letters of Credit.

Credits that are issued and governed by UCP 600 will be interpreted in line with the entire set of 39 articles contained in UCP 600. However, exceptions to the rules can be made by express modification or exclusion.

The UCP 600 are the most successful rules ever developed in relation to trade and most Letters of Credit are subject to them. At the recent  ICC UK Winter Trade Finance Conference , there was a special programme which addressed the UCP 600. This looked at recent developments in industry practice and ICC policy, as well as a review of the latest Banking Commission Opinions.

Part 1 - What is a Letter of Credit and what are the benefits to its users?

Summary of the ucp 600.

Here are a few of the key elements which make up the UCP 600:

• Definition of key terms which are prevalent in international trade (e.g. honouring [of payments], applicants, banking days, presentation)
• How international trade documents (Letters of Credit) can be signed and acknowledged by all parties
• The difference between documents, goods and services (and which parties deal with these)
• Which parts of a Letter of Credit are negotiable and non-negotiable
• How credit works, and how payment is made
• How banks can communicate the confirmation of goods (teletransmission)
• Transportation of the goods, modes of transport, and who bears responsibility
• How to deal with discrepancies, waivers and giving notice
• The provision of original documents or electronic copies
• Bills of Lading
• Insurance and covering the cost of goods
• Loss of shipping documents in transit

Will the UCP 600 be revised?

At Trade Finance Global, many people ask whether the UCP 600 will be revised. The UCP 600 is a set of rules developed by the International Chamber of Commerce on the issuance and governance of Letters of Credit, which account for a significant proportion of global trade finance transactions.

The UCP 600 has taken over 3 years to develop

When looking at the UCP 600, it is important to look at the market environment and general notes about the current guidelines. It is general consensus that UCP 600 will not be revised any time soon. Some of the reasons for this and general notes about the UCP are outlined below:

• there was a 14 year gap between UCP 500 and UCP 600;
• The consulting group was established with 41 members from 26 countries, who held meetings on over 15 occasions
• Over 5000 comments were received and reviewed once the first draft of the UCP 600 came about, being unanimously approved in October 2006
• UCP 600 is doing relatively well and works most of the time, there have been a low number of disputes, usually centred around some ambiguous wording that could not be agreed when the UCP 600 was drafted;

The big question is, if it were to be revised,

• who would draft it and who in the market has the expertise to do so;
• revision would take time and be at a high cost;
• there is a lot of regulatory uncertainty in the market and policy would need to be drafted before any advancement of the documents;
• it is unknown what will happen to various sanctions that are operating in the market;
• the ISBP is used to clarify points and there are further opinions that do the same; and
• the system will never be perfect as there will always need to be compromise – it covers over 150 trading countries and needs to reflect the commercial and legal realities.

Part 2 - Explanation of the UCP 600 rules and history of UCP

Part 3 - evolution of ucp 600 rules – will we see ucp 700 rules.

Trade Finance Global interviewed Pradeep Taneja, Managing Director of Taneja Global Trade Consulting, Bahrain and Co-Chairman and Board member of ICC Bahrain to learn more about Letters of Credit. To read this inteview, click here .

Electronic UCP (eUCP)

In 2019, the International Chamber of Commerce also released an updated supplement for the electronic rules (eRules) of the Uniform Customs & Practice for Documentary Credits. TFG covered the key changes for V2.0 of the eUCP rules, which can be found here .

Summary of the Key Articles in the ICC UCP 600

Articles 1 – 5  – General Provisions and Definitions

Articles 6 – 13  – Liabilities and Responsibilities

Articles 14 –  Examination of Documents

Article 15 – 17 –  Examination of Documents

Articles 18 – 28  – Documents

Articles 29 – 33  – Miscellaneous Provisions

Articles 34 – 37  – Disclaimers

Articles 38 – 39  – Transferable Credit & Assignment

What’s the difference between UCP 600 and UCP 500?

The UCP 500, was revised in 1993, a process which reviewed and overhauled opinions, decisions, URR525, ISP98 and eUCP.

Seven key articles were amended.

In comparison to UCP 500,

• New terminology added, concepts & wording introduced
• Reorganisation of the rules
• Substantive & cosmetic changes
• Improved clarity, yet created new ambiguity

Download our UCP600 Infographic (Free UCP PDF 2020)

UCP600 PDF Infographic:

NEXT >> Problems with Letters of Credit

Part 4 - 3 tips for using UCP 600 rules in Letters of Credit

What about the eucp.

ICC Update on UCP

Recently, the ICC updated eUCP 600 rules (eRules), to accelerate the digitilisation of trade finance. Trade Finance Global have published the updates on the eRules for ‘eUCP 600’, which are supplementary rules to these UCP 600 rules. Find out more here .

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Download our free Letters of Credit guide by filling in the form below:

1 | Introduction to the Letter of Credit 2 | Types of Credit 3 | UCP 600 and the Letter of Credit 4 |  UCP 600 – Ultimate Guide 5 | Benefits of Letters of Credit 6 | Handling Document Discrepancies 7 | Restricted Letters of Credit 8 | Letters of Credit vs Bank Guarantees 9 | Standby Letters of Credit 10 | Sight Letters of Credit 11 | eUCP Explained 12 | URC 522 and eURC 13 | SWIFT Messaging Types 14 | Research 15 | BAFT & TFG Guide 16 | Parties Involved 17 | Letters of Credit Rules 18 | ISBP 821 19 | Financial Crime, Fraud and Sanctions 20 | Presentation of Documents 21 | Dispute Resolution 22 | Digitalisation and the Future

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About the Author

Deepesh Patel is Editorial Director at Trade Finance Global (TFG). In this role, Deepesh leads efforts in developing TFG’s brand, relationships and strategic direction in key markets, including the UK, US, Singapore, Dubai and Hong Kong.

Deepesh regularly chairs and speaks at international industry events with the WTO, BCR, Excred, TXF, The Economist and Reuters, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.

Deepesh is the host of the ‘Trade Finance Talks’ podcast and ‘Trade Finance Talks TV’. He is co-author of ‘Blockchain for Trade: A Reality Check’ with the ICC and the WTO, alongside other industry research.

In addition to his work at TFG, Deepesh is a Strategic Advisor for WOA, and works closely with ITFA. He also sits on the Fintech Working Group of the Standardised Trust.

Prior to TFG, Deepesh worked at Travelex where he was responsible for the cards business and the Travelex Money app in Europe, NAM, UK and Brazil. Deepesh is Chair of Governors and co-opted LA Governor of the Wyvern Federation, which has responsibility for 5 primary schools in South London.

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Rules of International Trade

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Below are quick links to all Rules of International Trade.

ISBP 821 International Standard Banking Practice

The ISBP is a checklist of best practices worldwide for checking documents under the UCP, ICC's universally used rules on letters of credit.

The publication International Standard Banking Practice for the Examination of Documents under UCP 600.

eUCP 2.1 Electronic Uniform Customs and Practice for Documentary Credits

eUCP VERSION 2.1

The eUCP is a supplement to the UCP that, when used in conjunction with the UCP, will provide the necessary rules for the presentation of the electronic equivalents of paper documents under letters of credit.

eURC 1.1 Supplement for Electronic Presentation (eURC) Version 1.1

eURC Version 1.1

The ICC Uniform Rules for Collections are a practical set of Rules to aid bankers, buyers, and sellers in the collections process.

The supplement for Electronic Presentation, eURC, ensures continued digital compatibility for presentation of electronic records under Collections.

URDTT Uniform Rules for Digital Trade Transactions

URDTT VERSION 1.0

The ICC Uniform Rules for Digital Trade Transactions (URDTT) are intended: (a) for a fully digital environment; (b) to be neutral with regard to technology and messaging standards; and (c) to extend into the corporate space, including commercial transactions and the growing community of non-bank providers of financial services.

The URDTT are designed to be compatible with UNCITRAL Model Laws, including those on Electronic Commerce, Electronic Signatures and Electronic Transferable Records.

ISDGP International Standard Demand Guarantee Practice

The International Standard Demand Guarantee Practice for URDG 758 (ISDGP) is a companion document to the ICC Uniform Rules for Demand Guarantees 758 (URDG). It supplements the URDG by identifying and recording best practice in relation to the URDG rules and beyond.

UCP 600 Uniform Customs and Practice for Documentary Credits

The UCP 600 are the latest revision of the Uniform Customs and Practice for Documentary Credits. UCP 600 comes into effect on July 1, 2007.

The 39 articles of UCP 600 are a comprehensive and practical working aid to bankers, lawyers, importers, and exporters, transport executives, educators, and everyone involved in letter of credit transactions worldwide.

eUCP 2.0 Electronic Uniform Customs and Practice for Documentary Credits

eUCP VERSION 2.0

Isbp 745 international standard banking practice.

The ISBP is a checklist of best practices worldwide for checking documents under the UCP, ICC’s universally used rules on letters of credit.

UCP 500 Uniform Customs and Practice for Documentary Credits

The UCP 500 are the Uniform Customs and Practice for Documentary Credits. UCP 500 came into effect on January 1, 1994.

The 49 articles of UCP 500 are a comprehensive and practical working aid to bankers, lawyers, importers, and exporters, transport executives, educators, and everyone involved in letter of credit transactions worldwide.

URC 522 Uniform Rules for Collections

The URC 522 are the Uniform Rules for Collections. URC 522 came into effect on 01 January 1996.

The ICC Uniform Rules for Collections are a practical set of Rules to aid bankers, buyers, and sellers in the collections process. The Rules have been prepared to resolve problems that practitioners have experienced in their everyday operations since 1979.

eURC 1.0 Supplement for Electronic Presentation (eURC) Version 1.0

eURC Version 1.0

Urr 725 the uniform rules for bank-to-bank reimbursements.

The URR 725 are the Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits.

URR 725 should not be seen as a revision of URR 525. It is an updating process that has followed the same manner as the eUCP, i.e. to change the style to match that of UCP 600. The changes were approved by the ICC national committees at the ICC Banking Commission in April 2008.

URDG 758 Uniform Rules for Demand Guarantees

The URDG 758 are the Uniform Rules for Demand Guarantees - effective 01 July 2010.

This revision of ICC's Uniform Rules for Demand Guarantees (URDG) is the first since the rules were developed by ICC in 1991. The original rules, URDG 458, gained broad international acceptance in recent years following their incorporation by the World Bank in its guarantee forms and their endorsement by UNCITRAL and leading industry associations, such as FIDIC.

ISP 98 International Standby Practices

International Standby Practices is a new set of rules and best practice for users of standby letters of credit.

Though standby letters of credit have similarities with commercial letters of credit and other financial instrument, there are significant differences in scope and practice. A new set of Rules was therefore required for this workhorse of commerce and finance and ISP 98 fills this important gap in the market place.

URF 800 Uniform Rules for Forfaiting

ICC Uniform Rules for Forfaiting details how forfaiting facilitates the provision of finance to the international trade community. It eliminates certain risks, improves Cash Flow and can considerably speed up and simplify transactions. The International Chamber of Commerce (ICC) and the International Forfaiting Association (IFA) have joined forces to provide the business community with the first ever Uniform Rules on Forfaiting (URF 800).

DOCDEX Documentary Credit Dispute Resolution Expertise

The International Centre for Expertise administers the ICC Rules for Documentary Instruments Dispute Resolution Expertise (DOCDEX), established by the ICC Banking Commission to facilitate the rapid settlement of disputes arising under the Uniform Customs and Practice for Documentary Credits (UCP), the Uniform Rules for Bank-to-Bank Reimbursement under Documentary Credits (URR), the ICC Uniform Rules for Collections (URC), or the ICC Uniform Rules for Demand Guarantees (URDG).

URBPO Uniform Rules for Bank Payment Obligations

The scope of the Uniform Rules for Bank Payment Obligations (URBPO) lies solely in the bank-to-bank space. This is the scope agreed in the memorandum of understanding signed between ICC and SWIFT in September 2011 and the terms of reference provided to the Drafting Group. URBPO are designed to operate in what is known as the 'collaborative' space as will any Transaction Matching Application (TMA) chosen by financial institutions (known in URBPO as Involved Banks) for a given transaction.

• BPO Accounting and Capital Treatment
• ICC Guidelines for the Creation of BPO Customer Agreements
• BPO Frequently asked questions - Banks
• BPO Frequently asked questions - Corporates

eUCP Electronic Uniform Customs and Practice for Documentary Credits

Uniform Rules for Documentary Credits (UCP 600) - eBook

The latest edition of the Uniform Customs and Practice for Documentary Credits (UCP) - the ICC's rules on documentary credits.

Contains important new provisions in transport, insurance and compliance

Includes a "Definitions" article designed to clarify the meaning of key terms

Also includes version 2.0 of the eUCP - the 14 articles of ICC's supplement to the UCP that govern presentation of documents in electronic form

eBook Summary

Description.

Commercial letters of credit are the lifeblood of international trade.

For more than 85 years, the Uniform Customs and Practice for Documentary Credits (UCP) - the International Chamber of Commerce 's rules on documentary credits - have governed letter of credit transactions worldwide. 

UCP 600 contains important new provisions in the fields of transport, insurance and compliance, which will form the basis of letter of credit transactions for years to come. 

The revised UCP includes a "Definitions" article designed to clarify the meaning of key terms, a changed practice for giving a notice of refusal and other modifications you will need to know. It also includes version 2.0 of the eUCP - the 14 articles of ICC's supplement to the UCP that govern presentation of documents in electronic form. 

Since its inception, the UCP has remained a vital component of international trade. Bankers, traders, lawyers, transporters, academics and all who deal with letter of credit transactions will refer to UCP 600 on a daily basis. 

Table of contents

ICC Uniform Customs and Practice for Documentary Credits

Introduction

Article 1       Application of UCP

Article 2       Definitions

Article 3       Interpretations

Article 4       Credits v. Contracts

Article 5       Documents v. Goods, Services or Performance

Article 6       Availability, Expiry Date and Place for Presentation

Article 7       Issuing Bank Undertaking

Article 8       Confirming Bank Undertaking

Article 9       Advising of Credits and Amendments

Article 10     Amendments

Article 11     Teletransmitted and Pre-Advised Credits and Amendments

Article 12    Nomination

Article 13     Bank-to-Bank Reimbursement Arrangements

Article 14     Standard for Examination of Documents

Article 15     Complying Presentation

Article 16     Discrepant Documents, Waiver and Notice

Article 17     Original Documents and Copies

Article 18     Commercial Invoice

Article 19     Transport Document Covering at Least Two Different Modes of Transport

Article 20     Bill of Lading

Article 21     Non-Negotiable Sea Waybill

Article 22     Charter Party Bill of Lading

Article 23     Air Transport Document

Article 24     Road, Rail or Inland Waterway Transport Documents

Article 25     Courier Receipt, Post Receipt or Certificate of Posting

Article 26     “On Deck”, “Shipper’s Load and Count”, “Said by Shipper to Contain” and Charges Additional to Freight

Article 27     Clean Transport Document

Article 28     Insurance Document and Coverage

Article 29     Extension of Expiry Date or Last Day for Presentation

Article 30     Tolerance in Credit Amount, Quantity and Unit Prices

Article 31     Partial Drawings or Shipments

Article 32     Instalment Drawings or Shipments

Article 33     Hours of Presentation

Article 34     Disclaimer on Effectiveness of Documents

Article 35     Disclaimer on Transmission and Translation

Article 36     Force Majeure

Article 37     Disclaimer for Acts of an Instructed Party

Article 38     Transferable Credits

Article 39     Assignment of Proceeds

Supplement to UCP 600 for Electronic Presentation

Introduction eUCP Version 2.0

Introduction 1.1

Article e1               Scope of the eUCP

Article e2               Relationship of the eUCP to the UCP

Article e3               Definitions

Article e4               Electronic Records and Paper Documents

• Goods, Services or Performance

Article e5               Format

Article e6               Presentation

Article e7               Examination

Article e8               Notice of Refusal

Article e9               Originals and Copies

Article e10             Date of Issuance

Article e11             Transport

Article e12             Data Corruption of an Electronic Record

Article e13             Additional Disclaimer of Liability for Presentation of Electronic Records under eUCP

Article e14             Force Majeure

Acknowledgements

ICC at a Glance

• Publishing date: 2007
• Number of pages: 70
• Language: English

Important note

Please note that the eBook delivery will be deferred. After purchase, you will receive an email with instructions on how to download the eBook within 3 working days.

Please note upon receiving your eBook, you will have 60 days to download it. Kindly note that the eBook link is for one user only. The eBook cannot be lent (one eBook link per user). 

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Standby and Commercial Letters of Credit, Third Edition alerts you to current developments and discusses the recent UCP600, former UCP500, ISP98, UCC Article 5, and current trade practices and problems. The authors review letter of credit law and practices, helping to resolve concerns of applicants, beneficiaries, and issuers.

This essential resource includes:

• Sample forms and clauses, procedures and checklists
• Current court cases and extensive Table of Cases
• What can happen to letters of credit in bankruptcy and insolvency proceedings
• Fraud and injunction nightmares
• Cross-reference table UCP600 and UCP500
• Strategies for bank reimbursement agreements

Standby and Commercial Letters of Credit, Third Edition gives you immediate guidance when you need it most. And it supplies real-world letters of credit situations, with analyses of what was done right and wrong.

Note: Online subscriptions are for three-month periods.

Table Of Contents

Chapter 1. Meet This Book

• §1.01 If You Read No Further …
• §1.02 The Third Edition: For Whom and What's New
• §1.03 Letters of Credit: A Thumbnail History
• §1.04 Risks of Letters of Credit: Tough Times Checklist
• §1.05 Letters of Credit vis-à-vis Contracts
• §1.06 “The Program”: Terminology in This Book

Chapter 2. Definitions and Distinctions

• §2.01 Definitions About Letters of Credit Quibbler's Corner—What's in a Name?
• §2.02 Commercial Letters of Credit
• §2.03 Drafts and Banker's Acceptances
• §2.04 Standby Letters of Credit
• §2.05 Use of Definitions
• §2.06 The Independence Principle
• §2.07 Distinctions from Other Instruments
• §2.08 International Demand Guarantees
• §2.09 Documentary Collection
• §2.10 “Standard Banking Practice”
• §2.11 Trade Finance Alternatives

Chapter 3. Nomenclature for Credits

• §3.01 Introduction
• §3.02 Acceptance Credit
• §3.03 Advised Credit and Specially Advised Credit
• §3.04 Back-to-Back Credit
• §3.05 Circular Credit and Circular Negotiation Credit
• §3.06 Clean Credit
• §3.07 Commercial Letter of Credit
• §3.08 Confirmed Credit
• §3.09 Counter Credit
• §3.10 Deferred Payment or Deferred Sight Credit
• §3.10A Direct Pay Credit
• §3.11 Documentary Credit
• §3.12 Domestic Credit
• §3.13 Financial Guarantee-Type Standby Letter of Credit
• §3.14 Firm Credit
• §3.15 Foreign, Export-Import, or Transit Credit
• §3.16 Inoperative Credit
• §3.17 Irrevocable Credit
• §3.18 Negotiation and Nomination: Discussion
• §3.19 Negotiation Credit
• §3.20 Notation Credit
• §3.21 Open or General Credit
• §3.22 Partial Performance Credit
• §3.23 Performance-Based Standby Letter of Credit
• §3.24 Postoperative Credit
• §3.25 Preadvised Credit
• §3.26 Preoperative Credit
• §3.27 Red Clause or Anticipatory Credit
• §3.28 Reimbursement Credit
• §3.29 Revocable Credit
• §3.30 Revolving Credit
• §3.31 Sight or Payment Credit
• §3.32 Silent Confirmation
• §3.33 Simple Credit
• §3.34 Straight Credit
• §3.35 Teletransmission Credit
• §3.36 Third-Party Credits
• §3.37 Transferable Credit
• §3.38 Two-Party Credit
• §3.39 Usance Credit

Chapter 4. Article 5 of The Uniform Commercial Code

• §4.01 UCC: Introduction
• §4.02 UCC: Fundamentals of a Letter of Credit
• §4.03 UCC: Adviser's Obligations, §5-107(c)
• §4.04 UCC: Issuer's Obligations, §5-108
• §4.05 UCC: Confirmer's Obligations, §5-107(a)
• §4.06 UCC: Nominated Person's Obligations
• §4.07 UCC: Disclaimers of Obligations, §§5-103(c)and 5-111(e)
• §4.08 UCC: Beneficiary's Warranties, §5-110(1)
• §4.09UCC: Fraud and Prehonor Relief from Fraud, §5-109
• §4.10 UCC: Posthonor Litigation
• §4.11 The Intersection of UCC Article 5 and UCC Article 9

Chapter 5. Uniform Customs and Practice for Documentary Credits (UCP 500)

• §5.01 UCP: What It Is and How It Applies; Article 1
• §5.02 UCP: Fundamentals; Articles 2–6
• §5.03 UCP: Notifications; Articles 7–12
• §5.04 UCP: Examination of Documents; Article 13—Standards for Examination of Documents
• §5.05 UCP: Notice of Dishonor; Article 14—Discrepant Documents and Notice
• §5.06 UCP: Examination Notice and Preclusion: UCP 500 vis-à-vis UCC Article 5 and the New ISP
• §5.07 UCP: Disclaimers; Articles 15–19
• §5.08 UCP: Documents; Articles 20–22
• §5.09 UCP: Expiry; Articles 42–45
• §5.10 UCP: Transferable Credit; Article 48
• §5.11 UCP: Assignment of Proceeds; Article 49
• §5.13 International Standard Banking Practice (ISBP)
• §5.14 ICC Rules for Bank-to-Bank Reimbursements

Chapter 5A. UCP 600

• §5A.01 UCP 600
• §5A.02 UCP 600, General Provisions and Definitions, Articles 1–6
• §5A.03 Bank Undertakings and Notifications, Articles 7–16
• §5A.04 Original Documents, Article 17
• §5A.05 Extension of Expiry Last Date or Last Day for Presentation, Article 29
• §5A.06 Tolerance in Credit Amount, Quantity, and Unit Prices, Article 30
• §5A.07 Partial Drawings or Shipments, Article 31
• §5A.08 Installment Drawings or Shipments, Article 32
• §5A.09 Hours of Presentation, Article 33
• §5A.10 Disclaimer on Effectiveness of Documents, Article 34
• §5A.11 Disclaimer on Transmission and Translation, Article 35
• §5A.12 Force Majeure, Article 36
• §5A.13 Disclaimer for Acts of an Instructed Party, Article 37
• §5A.14 Transferable Credits, Article 38
• §5A.15 Assignment of Proceeds, Article 39

Chapter 6. The International Standby Practices 1998 (ISP98)

• §6.01 Introduction
• §6.02 Rule 1, General Provisions
• §6.03 Rule 2, Obligations
• §6.04 Rule 3, Presentation
• §6.05 Rule 4, Examination
• §6.06 Rule 5, Notice, Preclusion, and Disposition of Documents
• §6.07 Rule 6, Transfer, Assignment, and Transfer by Operation of Law
• §6.08 Rules 7 through 10, Miscellaneous Provisions
• §6.09 Standby User Checklist for ISP98
• §6.10 Conclusion

Chapter 7. Rules and Governmental Actions

• §7.01 Introduction
• §7.02 Legal Proceedings and Principles
• §7.03 Governmental Actions
• §7.04 UNCITRAL, URDG, and Other Rules
• §7.05 Arbitration and Letters of Credit

Chapter 8. Fraud and Injunctions

• §8.01 Overview
• §8.02 Old Colony Trust and Sztejn Cases
• §8.03 OldUCC Article5 Ambiguities
• §8.04 RevisedUCC Article 5 and Fraud
• §8.05 Illegality—Enron and the Mahonia Case

Chapter 9. Insolvency

• §9.01 Introduction
• §9.02 Terminology
• §9.03 Pertinent Provisions of the Bankruptcy Code
• §9.04 Letters of Credit and Bankruptcy
• §9.05 Letters of Credit: State Insolvency; Status of Foreign Insolvency Proceedings in U.S. Bankruptcy Court
• §9.06 Conclusion

Chapter 10. Subrogation, Setoff, and Marshaling

• §10.01 What Is Subrogation?
• §10.02 Subrogation and Letters of Credit: Examples Before Revised UCC Article 5
• §10.03 Subrogation Under UCC Revised Article 5
• §10.04 Subrogation and Letters of Credit: Bankruptcy Code
• §10.05 Setoff Under the Bankruptcy Code
• §10.06 Doctrine of Marshaling

Chapter 11. Basic Mechanics

• §11.01 The Players
• §11.02 How Letters of Credit Are Issued
• §11.03 Applicant; Examples
• §11.04 Issuer; Examples
• §11.05 Confirming Bank; Examples
• §11.06 Advising Bank; Examples
• §11.07 Nominated Bank; Examples
• §11.08 Beneficiary; Examples
• §11.09 Amending a Letter of Credit
• §11.10 How to Present for Payment
• §11.11 Expiry; Examples
• §11.12 Fees
• §11.13 Transmission of Data and Money
• §11.14 Electronic Issuance and Presentation
• §11.15 Internal Controls

Chapter 12. Reimbursement Agreements Annotated

• §12.01 Reimbursement Agreements
• §12.02 Examination of Documents: Bifurcated Standard
• §12.03 Waiving Liability of Issuer, Revised UCC Article §5-103(c)
• §12.04 Reimbursement Provisions
• §12.05 Choice of Rules—UCP or ISP? Exclusions to ISP Rules
• §12.06 Introduction to Annotated Forms
• §12.07 Commercial LOC Reimbursement and Security Agreement, with Annotations
• §12.08 Commercial LOC Application and Reimbursement Agreement, with Annotations
• §12.09 Reimbursement Agreement for Standby LOC Subject to the ISP
• §12.10 Unsecured Continuing Standby LOC Reimbursement Agreement: Good Example

Chapter 13. Standby Letters of Credit: Anatomy of Sample Forms

• §13.01 Using Chapters 13 and 14 Together
• §13.02 Clean LOC, Not an LOC, Standby LOC: Comparisons
• §13.03 Standby LOC: Application Form
• §13.04 Exclusions from UCP 500 and ISP98
• §13.05 Basic Form: Standby LOC
• §13.06 Extend Expiry or Pay for Evergreen Contracts
• §13.07 Standby LOC Form: Separately Confirmed Credit
• §13.08 Standby LOC Form: Amendment
• §13.09 Draft or Demand for Payment
• §13.10 Standby LOC Presentation Documents
• §13.11 Transfer Request for Standby LOC
• §13.12 Standby LOC Form: Assignment of Proceeds
• §13.13 Standby LOC Form: Release of Credit or Reduction of Amounts Available
• §13.14 Standby LOC Form: ForceMajeure Extending Expiry
• §13.15 Examples of Standby Credit Forms

Chapter 14. Standby Letters of Credit: Language and Procedures

• §14.01 Reconciling Contracts with Credits
• §14.02 Contract for Sale to Be Secured by Standby Letter of Credit
• §14.03 Issuer's Engagement to Pay
• §14.04 Nondocumentary, Extrinsic Conditions
• §14.05 Discrepancies: Standby LOC Examples
• §14.06 Use of the Word “Purported”
• §14.07 Drafts and Payment Demands
• §14.08 Statements of Nonperformance and Other Documents

Chapter 15. Illustrative Transactions

• §15.01 Illustrative Transactions: In General
• §15.02 Accounts Payable
• §15.03 Appeal and Supersedeas Bonds
• §15.04 Arbitration: Security for Award
• §15.05 Bid, Performance, and Advance Payment Security
• §15.06 Credit Rating Enhancement of Debt Securities
• §15.07 Installment Payments and Sales
• §15.08 Lease Rentals; Sale and Leaseback
• §15.09 Limited Partnerships, Installment Contributions
• §15.10 Loan Collateral
• §15.11 Oil Industry
• §15.12 Postcontract Addition of Security; Form
• §15.13 Promissory Notes
• §15.14 Reinsurance
• §15.15 Trade Accounts Receivable
• §15.16 United States Government Contracts and Transactions
• §15.17 State Contracts and Transactions
• §15.18 Real Estate Transactions
• §15.19 International Crisis Resolution Using a Standby LOC
• §15.20 Miscellaneous Uses of Standby Letters of Credit

Chapter 16. Forms, Procedures, and Checklists

• §16.01 Using Chapters 16 and 17 Together
• §16.02 ICC Standard Documentary Credit Forms
• §16.03 Commercial LOC Application Form
• §16.04 Basic Form: Commercial LOC
• §16.05 Commercial Letters of Credit in Action
• §16.06 Discrepant Documents and Waivers
• §16.07 Transfers, with Forms
• §16.08 Assignment of Proceeds: Form
• §16.09 Applicant's Checklist for LOCs
• §16.10 Beneficiary'sChecklist for LOCs
• §16.11 Administrative Procedures

Chapter 17. Commercial Letters of Credit: Presentation Documents

• §17.01 Introduction: Purposes and Scope of Chapter
• §17.02 Transport Documents: Definitions
• §17.03 UCP Transport Documents
• §17.04 UCP: Insurance Documents
• §17.05 UCP: Commercial Invoices and Other Documents; Articles 37–38
• §17.06 UCP 500: Allowances, Partial and Installment Shipments/Drawings; Articles 39–41
• §17.07 UCP 500's Words of Art: Articles 39, 46–47
• §17.08 UCC Article 7: Bills of Lading Provisions
• §17.09 Presentation Documents: Cases Illustrating Deficiencies

Chapter 18. Paying the Beneficiary: The Fundamental Principles of Letter of Credit Transactions

• §18.01 Paying the Beneficiary
• §18.02 Strict Compliance
• §18.03 Timely Presentation
• §18.04 Measuring Compliance
• §18.05 The Preclusion Rule
• §18.06 The Independence Principle
• §18.07 Fraud
• §18.08 Warranties and Other Postpayment Rights and Obligations
• §18.09 Conclusion

Table of Cases

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Assignment of proceeds

Post by SIRAJ UD-DAULAH » Sun Aug 07, 2011 4:37 pm

Post by picant » Sun Aug 07, 2011 6:26 pm

Post by ARshakil » Sun Aug 07, 2011 6:44 pm

assignment of proceeds

Post by nesarul » Mon Aug 08, 2011 7:04 am

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UCP 600 – Uniform Rules for Documentary Credits

Paperback in English edition.

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• Beschreibung
• Hinweise zu Auslandslieferungen

Commercial letters of credit are the lifeblood of international trade. For more than 85 years, the Uniform Customs and Practice for Documentary Credits (UCP) – the International Chamber of Commerce’s rules on documentary credits – have governed letter of credit transactions worldwide.

UCP 600 contains important new provisions in the fields of transport, insurance and compliance, which will form the basis of letter of credit transactions for years to come.

The revised UCP includes a „Definitions“ article designed to clarify the meaning of key terms, a changed practice for giving a notice of refusal and other modifications you will need to know. It also includes version 2.1 of the eUCP – the 14 articles of ICC’s supplement to the UCP that govern presentation of documents in electronic form.

Since its inception, the UCP has remained a vital component of international trade. Bankers, traders, lawyers, transporters, academics and all who deal with letter of credit transactions will refer to UCP 600 on a daily basis.

Including eUCP Version 2.1.

Foreword …..  1

ICC Uniform Customs and Practice for Documentary Credits

Introduction …..  6

Article 1: Application of UCP….. 9

Article 2: Definitions….. 9

Article 3: Interpretations….. 10

Article 4: Credits v. contracts….. 10

Article 5: Documents v. goods, services or performance….. 11

Article 6: Availability, expiry date and place for presentation….. 11

Article 7: Issuing bank undertaking…… 11

Article 8: Confirming Bank Undertaking….. 12

Article 9: Advising of credits and amendments….. 12

Article 10: Amendments….. 13

Article 11: Teletransmitted and pre-advised credits and amendments….. 13

Article 12: Nomination….. 14

Article 13: Bank-to-Bank Reimbursement Arrangements….. 14

Article 14: Standard for examination of documents….. 15

Article 15: Complying presentation…… 16

Article 16: Discrepant documents, waiver and notice…… 16

Article 17: Original documents and copies….. 17

Article 18: Commercial Invoice…… 17

Article 19: Transport document covering at least two different modes of transport…… 17

Article 20: Bill of lading…… 18

Article 21: Non-negotiable sea waybill…… 19

Article 22: Charter party bill of lading…… 21

Article 23: Air transport document…… 21

Article 24: Road, rail or inland waterway transport documents….. 22

Article 25: Courier receipt, post receipt or certificate of posting….. 23

Article 26: “On deck”, “shipper’s load and count”, “said by shipper to

contain” and charges additional to freight…… 23

Article 27: Clean transport document…… 23

Article 28: Insurance document and coverage…… 24

Article 29: Extension of expiry date or last day for presentation…… 25

Article 30: Tolerance in credit amount, quantity and unit prices…… 25

Article 31: Partial drawings or shipments….. 25

Article 32: Instalment drawings or shipments…… 26

Article 33: Hours of presentation…… 26

Article 34: Disclaimer on effectiveness of documents…… 26

Article 35: Disclaimer on transmission and translation….. 26

Article 36: Force majeure….. 26

Article 37: Disclaimer for acts of an instructed party…… 26

Article 38: Transferable credits….. 27

Article 39: Assignment of proceeds….. 28

ICC Uniform Customs and Practice for Documentary Credits for Electronic Presentation

Introduction to eUCP Version 2.1…..  31

Preliminary considerations…..  33

Article e1: Scope of the Uniform Customs and Practice for Documentary

Credits (UCP 600) supplement for electronic presentations (“eUCP”)….. 34

Article e2: Relationship of the eUCP to the UCP….. 34

Article e3: Definitions….. 34

Article e4: Electronic records and paper documents v. goods, services or performance 35 Article e5: Format…… 35

Article e6: Presentation….. 36

Article e7: Examination….. 37

Article e8: Notice of refusal….. 37

Article e9: Originals and copies…… 37

Article e10: Date of issuance….. 38

Article e11: Transport…… 38

Article e12: Data corruption of an electronic record…… 38

Article e13: Additional disclaimer of liability for presentation of electronic

records under eUCP…… 38

Article e14: Force majeure….. 39

ICC Banking Commission at a glance…..  39

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Einheitliche Richtlinien für auf Anfordern zahlbare Garantien (URDG 758)

Taschenbuch inklusive Mustertexte in deutsch-englischer Ausgabe

Standard internationaler Bankpraxis für die Dokumentenprüfung unter den ERA 600 (ISBP 821)

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Uniform Customs and Practice for Documentary Credits – Supplement for Electronic Presentation

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