| ICC's Uniform Rules for Bank-to-Bank
Reimbursements under Documentary Credits (URR) have recently
been updated. The update, ICC Publication No. 725, was necessary
to bring these long-standing rules into conformity with UCP
600, ICC's universally used rules on letters of credit, which
came into effect on 1 July 2007.
The updated text was reviewed by the Banking Commission and
presented to ICC National Committees in winter 2008. Dan Taylor
(US), Vice Chair of the Banking Commission, presented the
update at the ICC Banking Commission meeting in Athens on
16 April 2008, where it was approved.
URR 725 contains a number of technical changes from the previous
version, URR 525, and will be used by letter of credit practitioners
who elect to incorporate the revised URR into their letters
of credit. For instance, Article 1 was changed to indicate
“express indication”, as in UCP 600. Article 6
was changed for “operative reimbursement authorisation”
again to align the words with terms used in UCP 600. In Article
9 G, an addition was made (“when you are bound with
the issuance”). It was also decided to remove from Article
11 E the reference to reserve or indemnity. The rules were
also updated to define “honour” as it appears
in UCP 600.
As decided at the Banking Commission meeting on 15-16 April
2008, the updated text will come into effect on 1 October
2008.
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