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#737291 - 05/21/07 07:46 PM New Letter of Credit rule - USP 600
RebekahL CRCM Offline
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Does anyone know much about the new Uniform Customs and Practices for Documentary Credits rule -- the "UCP 600"? It goes into effect July 1, 2007. From what I can tell, banks mostly just need to revise their Letter of Credit forms to reference the new USP 600 instead of the old UCP 500. It doesn't look like much else needs to be done. Anyone else familiar with the changes?
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#737419 - 05/21/07 09:08 PM Re: New Letter of Credit rule - USP 600 RebekahL CRCM
Tesla Offline
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I haven't read through all the material on this yet, but do have the following additional tidbits:

The issuer of the letter of credit has an absolute deadline of five banking days to examine the documents and decide whether or not to pay the draw request. (UCP Art 14) Under UCP 500 - the issuer had a reasonable period of time (not to exceed 7 banking days).

The issuer is contractually obligated to the beneficiary under the terms of the letter of credit.

The issuer is required to check that addresses on the letter of credit or any other document are within the same country. (They do not need to be the same address - just the same country).

If the issuer refuses to honor a draw, it must send a notice containing specific information. UCP Art 16. (I haven't read all of this yet).

If I learn any more I will come back here and update. I am just inundated and these were my notes so far.
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#737458 - 05/21/07 09:54 PM Re: New Letter of Credit rule - USP 600 Tesla
RebekahL CRCM Offline
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Thanks SkiDoo! It seems like the changes are pretty easy, and not much of a change, really. Sure, the 5 days thing is different, but the other stuff seems like just good common sense. Thanks again!
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#737614 - 05/22/07 01:35 PM Re: New Letter of Credit rule - USP 600 RebekahL CRCM
TINKerBell Offline
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can anyone direct me to the site that references these changes? Thanks!
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#737645 - 05/22/07 02:05 PM Re: New Letter of Credit rule - USP 600 TINKerBell
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What would the advantages/disadvantages be to not refrencing the UCP in your LoC, and relying solely on your states UCC?
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#737817 - 05/22/07 04:49 PM Re: New Letter of Credit rule - USP 600 #Just Jay
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bump
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#738028 - 05/22/07 06:51 PM Re: New Letter of Credit rule - USP 600 TINKerBell
RebekahL CRCM Offline
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Karen, here are some resources:

Article summarizing the new rule

Although this training session already occured (I missed it, too), the CD ROM is available for $230, I believe. bbsgrant, this seminar might address your question....
CD ROM training on the subject
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#738199 - 05/22/07 08:27 PM Re: New Letter of Credit rule - USP 600 RebekahL CRCM
TINKerBell Offline
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thank you so much!
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