Skip to content
BOL Conferences
Thread Options
#737291 - 05/21/07 07:46 PM New Letter of Credit rule - USP 600
RebekahL CRCM Offline
Platinum Poster
RebekahL CRCM
Joined: Feb 2003
Posts: 874
Big Sky Country
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?
_________________________
Me, Type A? Maybe - I'm not done analyzing it yet.

Return to Top
Lending Compliance
#737419 - 05/21/07 09:08 PM Re: New Letter of Credit rule - USP 600 RebekahL CRCM
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,726
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.
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

Return to Top
#737458 - 05/21/07 09:54 PM Re: New Letter of Credit rule - USP 600 Tesla
RebekahL CRCM Offline
Platinum Poster
RebekahL CRCM
Joined: Feb 2003
Posts: 874
Big Sky Country
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!
_________________________
Me, Type A? Maybe - I'm not done analyzing it yet.

Return to Top
#737614 - 05/22/07 01:35 PM Re: New Letter of Credit rule - USP 600 RebekahL CRCM
TINKerBell Offline
Power Poster
TINKerBell
Joined: Nov 2006
Posts: 3,255
Tiger's Den!
can anyone direct me to the site that references these changes? Thanks!
_________________________
The last thing that blew my mind was the wind.

Return to Top
#737645 - 05/22/07 02:05 PM Re: New Letter of Credit rule - USP 600 TINKerBell
#Just Jay Offline
10K Club
#Just Jay
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
What would the advantages/disadvantages be to not refrencing the UCP in your LoC, and relying solely on your states UCC?
_________________________
I don't repeat gossip, so listen closely...

Return to Top
#737817 - 05/22/07 04:49 PM Re: New Letter of Credit rule - USP 600 #Just Jay
TINKerBell Offline
Power Poster
TINKerBell
Joined: Nov 2006
Posts: 3,255
Tiger's Den!
bump
_________________________
The last thing that blew my mind was the wind.

Return to Top
#738028 - 05/22/07 06:51 PM Re: New Letter of Credit rule - USP 600 TINKerBell
RebekahL CRCM Offline
Platinum Poster
RebekahL CRCM
Joined: Feb 2003
Posts: 874
Big Sky Country
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
_________________________
Me, Type A? Maybe - I'm not done analyzing it yet.

Return to Top
#738199 - 05/22/07 08:27 PM Re: New Letter of Credit rule - USP 600 RebekahL CRCM
TINKerBell Offline
Power Poster
TINKerBell
Joined: Nov 2006
Posts: 3,255
Tiger's Den!
thank you so much!
_________________________
The last thing that blew my mind was the wind.

Return to Top

Moderator:  Andy_Z