Post by Sapphire Capital on Sept 8, 2009 8:26:09 GMT 4
Use of a reimbursing bank and the URR 725
Article 13 UCP 600 was drafted in order to conform with the URR Uniform Rules for Bank-to-Bank Reimbursement (URR 525). The URR 525 have been replaced by the URR 725 which entered into effect as of October 1, 2008.
This means, that the URR have to be specficially referenced in order to make them part of the agreement. Unless such a reference exists Article 13 UCP 600 is solely applicable.
The ICC stresses that the URR 725 is an update, to change the style to match that of UCP 600.
Article 13 b (ii) UCP 600 is identical in substance to Article 19 b UCP 500 (A claiming bank is not required to supply the reimbursing bank with a certificate of compliance.) Therefore the reimbursing bank often does not examine the documents, but only facilitates reimbursement between issuing/confirming bank and nominated bank.
The UCP 600 introduced for the first time that the reimbursement authorization should not be subject to an expiry date.
General information only, this is no legal or financial advice or legal opinion and no solicitation or offering of services. Use of posted information should be contingent on your counsel advise on a case by case basis.