Urr 725
Urr 725
Urr 725
A. GENERAL PROVISIONS AND DEFINITIONS B. LIABILITIES AND RESPONSIBILITIES C. FORM AND NOTIFICATION OF AUTHORISATIONS, AMENDMENTS AND CLAIMS D. MISCELLANEOUS PROVISIONS
Article 2. Definitions
For the purpose of these rules, the following terms shall have the meaning specified in this article and may be used in the singular or plural as appropriate: a. "Issuing bank" means the bank that has issued a credit and the reimbursement authorization under that credit. b. "Reimbursing bank" means the bank instructed or authorized to provide reimbursement pursuant to a reimbursement authorization issued by the issuing bank. c. "Reimbursement authorization" means an instruction or authorization, independent of the credit, issued by an issuing bank to a reimbursing bank to reimburse a claiming bank or, if so requested by the issuing bank, to accept and pay a time draft drawn on the reimbursing bank.
d. "Reimbursement Amendment" means an advice from the issuing bank to a reimbursing bank stating changes to a reimbursement authorization. e. "Claiming Bank" means a bank that honours or negotiates a credit and presents a reimbursement claim to the reimbursing bank. "Claiming Bank" includes a bank authorized to present a reimbursement claim to the reimbursing bank on behalf of the bank that honours or negotiates. f. "Reimbursement Claim" means a request for reimbursement from the claiming bank to the reimbursing bank. g. "Reimbursement undertaking" means a separate irrevocable undertaking of the reimbursing bank, issued upon the authorization or request of the issuing bank, to the claiming bank named in the reimbursement authorization, to honour that bank's reimbursement claim, provided the terms and conditions of the reimbursement undertaking have been complied with. h. "Reimbursement undertaking amendment" means an advice from the reimbursing bank to the claiming bank named in the reimbursement authorization stating changes to a reimbursement undertaking. i. For the purpose of these rules, branches of a bank in different countries are considered to be separate banks.
C.
OF
AUTHORISATIONS,
v. parties responsible for charges (claiming bank's and reimbursing bank's charges) in accordance with Article 16 of these rules. A reimbursement amendment must state only the relative changes to the above and the credit number. e. If the reimbursing bank is requested to accept and pay a time draft, the reimbursement authorization must indicate the following, in addition to the information specified in (d) above:
i. ii. iii.
tenor of draft to be drawn; drawer; party responsible for acceptance and discount charges, if any.
A reimbursement amendment must state the relative changes to the above. An issuing bank should not require a sight draft to be drawn on the reimbursing bank. f. Any requirement for: i. ii. g. pre-notification of a reimbursement claim to the issuing bank must be included in the credit and not in the reimbursement authorization; pre-debit notification to the issuing bank must be indicated in the credit.
If the reimbursing bank is not prepared to act for any reason whatsoever under the reimbursement authorization or reimbursement amendment, it must so inform the issuing bank without delay. In addition to the provisions of Articles 3 and 4, the reimbursing bank is not responsible for the consequences resulting from non-reimbursement or delay in reimbursement of reimbursement claims when any provision contained in this article is not followed by the issuing bank or claiming Bank.
h.
or
Cancellation
of
Reimbursement
Except where the issuing bank has authorized or requested the reimbursing bank to issue a reimbursement undertaking as provided in Article 9 and the reimbursing bank has issued a reimbursement undertaking: a. b. the issuing bank may issue a reimbursement amendment or cancel a reimbursement authorization at any time upon sending notice to that effect to the reimbursing bank. the Issuing bank must send notice of any amendment to a reimbursement authorization that has an effect on the reimbursement instructions contained in the credit to the nominated bank or, in the case of a a credit available with any bank, the
advising bank. In case of cancellation of the reimbursement authorization prior to expiry of the credit, the issuing bank must provide the nominated bank or the advising bank with new reimbursement instructions. c. The issuing bank must reimburse the reimbursing bank for any reimbursement claims honoured or draft accepted by the reimbursing bank prior to the receipt by it of a notice of cancellation or reimbursement amendment.
c. If the Reimbursing bank is requested to accept and pay a time draft, the irrevocable reimbursement authorization must also indicate the following, in addition to the information contained in (b) above: i. ii. iii. tenor of draft to be drawn; drawer; party responsible for acceptance and discount charges, if any.
An issuing bank should not require a sight draft to be drawn on the reimbursing bank. d. If the reimbursing bank is authorized or requested by the issuing bank to issue its reimbursement undertaking to the claiming bank but is not prepared to do so, it must so inform the issuing bank without delay. e. A reimbursement undertaking must indicate the terms and conditions of the undertaking and:
the credit number and name if the issuing bank; the currency and amount of the reimbursement authorization, additional amounts payable and tolerance, if any; the currency and amount of the reimbursement undertaking; the latest date for presentation of a claim, including any usance period; the party to pay the reimbursement undertaking fee, if other than the issuing bank. The reimbursing bank must also include its charges, if any, that will be deducted from the amount claimed.
f. If the latest date for presentation of a claim falls on a day on which the reimbursing bank is closed for reasons other than those referred to in Article 15, the latest date for presentation of a claim shall be extended to the first following banking day. g. A reimbursing bank is irrevocably bound to honour a reimbursement claim as of the time it issues the reimbursement undertaking. h. i. ii. An irrevocable reimbursement authorization cannot be amended or cancelled without the agreement of the reimbursing bank. When an issuing bank has amended its irrevocable reimbursement authorization, a reimbursing bank that has issued its reimbursement undertaking may amend its undertaking to reflect such amendment. If a reimbursing bank chooses not to issue its reimbursement undertaking amendment, it must so inform the issuing bank without delay. An issuing bank that has issued its irrevocable reimbursement authorization amendment shall be irrevocably bound as of the time of its advice of the irrevocable reimbursement authorization amendment. The terms of the original irrevocable reimbursement authorization (or an authorization incorporating previously accepted irrevocable reimbursement authorization amendments) will remain in force for the reimbursing bank until it communicates its acceptance of the amendment to the issuing bank. A reimbursing bank must communicate its acceptance or rejection of an irrevocable reimbursement authorization amendment to the issuing bank. A reimbursing bank is not required to accept or reject an irrevocable reimbursement authorization amendment until it has received acceptance or rejection from the claiming bank to its reimbursement undertaking amendment. i. A reimbursement undertaking cannot be amended or cancelled without the agreement of the claiming bank. ii. A reimbursing bank is irrevocably bound as of the time it issues the reimbursement undertaking amendment.
iii.
iv.
v.
iii. The terms of the original reimbursement undertaking (or a reimbursement undertaking incorporating previously accepted reimbursement amendments) will remain in force for the claiming bank until it communicates its acceptance of the reimbursement undertaking amendment to the reimbursing bank. iv. A claiming bank must communicate its acceptance or rejection of a reimbursement undertaking amendment to the reimbursing bank.
e.
D. MISCELLANEOUS PROVISIONS
Article 13 - Foreign Laws and Usages
The issuing bank shall be bound by and liable to indemnify the reimbursing bank against all obligations and responsibilities imposed by foreign laws and usages.
Article 16 Charges
a. A reimbursing bank's charges are for the account of the issuing bank. b. When honouring a reimbursement claim, a reimbursing bank is obligated to follow the instructions regarding any charges contained in the reimbursement authorization. c. If a reimbursement authorization states that the reimbursing bank's charges are for the account of the beneficiary, they shall be deducted from the amount due to a claiming bank when reimbursement is made. Where a reimbursing bank follows the instructions of the issuing bank regarding charges (including commissions, fees, costs or expenses) and these charges are not paid, or a reimbursement claim is never presented to the reimbursing bank under the reimbursement authorization, the issuing bank remains liable for such charges. d. All charges paid by the reimbursing bank will be in addition to the amount of the authorization, provided that the claiming bank indicates the amount of such charges.
e. If the issuing bank fails to provide the reimbursing bank with instructions regarding charges, all charges shall be for the account of the Issuing bank.