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UCP500 Art.2
an arrangement, however named or described, whereby a bank(the issuing bank) acting at the request and on the instructions of a customer (the applicant) or on its own behalf,
Contents of a L/C
Items on the credit itself Basic parties Items on draft Settlement conditions兑付的方式 Items on goods,shipping documents , transport and insurance L/C amount and currency Additional conditions Reimbursement of the paying, accepting and negotiating bank The notation of the credit subject to UCP500
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The concept of a L/C
A L/c is a written undertaking by the issuing bank to the beneficiary, under which the bank will pay a sum certain in money to the beneficiary if the beneficiary of the L/C provides the bank with specified documents within a prescribed time period, which all comply with the terms and conditions of the credit.
➢ The new UCP 600 also contains within the text the 12 Articles of the
eUCP, ICC’s supplement to the Ua CP governing presentation of
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documents in electronic or part-electronic form.
3) authorizes another bank to negotiate, against stipulated documents, provided that the terms and conditions of the credit are complied with.
aቤተ መጻሕፍቲ ባይዱ
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Characteristics of a L/C
New Provisions ➢ a leaner set of rules, with 39 articles rather than 49 articles of UCP 500;
➢ a new section of “Definitions,” containing terms such as “honour” and “negotiation”;
➢ a replacement of the term “reasonable time” with a definite number of days for examining and determining compliance of documents;
➢ a new provision concerning addresses of the beneficiary and the applicant;
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UCP 600 2007 Revision
the ICC Banking Commission on 25 October, 2006 approved UCP 600, and it enters into force on July 1, 2007 and contains substantive changes to the existing rules
A written undertaking on the part of the issuing bank
Independent of the sales contract
Exclusively dealing with documents
High level of protection and security to both buyers and sellers
Chapter five Letter of credit
The concept and characteristics of a L/C Contents of a L/C Parties to a L/C Procedures of a documentary credit operation Types of credit Examination of a L/C
Abide byUCP500, Uniform Customs and Practice for Documentary Credits, ICC Publication No.500 1929/74， 1933/82，1951/151，1962/222，1974/290，1983/400， 1993/500, 2006/600 全文共49条，包括：总则与定义、信用证的格式与通 知、责任与义务、单据、杂项规定、可转让信用证和 款项让渡七个部分。
➢ an expanded discussion of “original documents”;
➢ re-drafted transport articles aimed at resolving confusion over the identification of carriers and agents.
1)is to make a payment to the order of a third party(the beneficiary), or is to accept and pay bills of exchange(drawn by the beneficiary); or
2)authorizes another bank to effect such payment, or to accept and pay such bills of exchange; or