Prior to the ucp 600, lc is categorized into two types, revocable and irrevocable (article 6, ucp 500) revocable credit is a credit that can be cancelled or amended by the applicant without prior notice given to the. Ucp 600 part i ucp 600 understanding & application part i victor pena vice president americas regional trade advisor global transaction services cash management trade services and finance securities services fund services 2 in the l/c overview of ucp 600 article 2 20. This note explains changes of interest to finance lawyers made by the uniform customs and practice for documentary credits, 2007 revision, icc publication no 600 (ucp 600) from the previous edition of the ucp, ucp 500.
Ucp 600 generally provides the same obligations as mandated for an lc issuer see article 8 isp98 rule 109 states: “confirmer is a person who, upon an issuer's nomination to do so, adds to the. A letter of credit confirmed by a bank based and operating in another country is payable by the confirming bank regardless of such situations, though the seller must still check on and have confidence in the laws of the confirmer’s country.
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 $1tn usd of trade per year. Introduction letter of credit (l/c) can be defined as an “undertaking” whereby the buyer’s bank is committed (on behalf of the buyer) to place an agreed amount of money at the seller’s disposal under some agreed conditions.
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.
Ucp 600 part i ucp 600 understanding & application part i victor pena vice president americas regional trade advisor global transaction services no change from ucp 500 legal status rules apply to lc by incorporation into the lc - not by operation of the law. Certified lc-ucp 600 professional, at infonet institute in , view the best master degrees here. At the time ucp 600 is implemented, there will be an updated version of the isbp (the most recent one being the 2013 revision) to bring its contents in line with the substance and style of the new rules.