Uniform Rules For Bank To Bank Reimbursement Pdf

Uniform rules for bank to bank reimbursement pdf

ICC Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits

They are binding on all parties thereto, unless expressly modified or excluded by the reimbursement authorization. In a bank-to-bank reimbursement subject to these rules, the reimbursing bank acts on the instructions and under the authority of the issuing bank. These rules are not intended to override or change the provisions of the Uniform Customs and Practice for Documentary Credits. 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.

For the purpose of these rules, branches of a bank in different countries are considered to be separate banks. A reimbursement authorization is separate from the credit to which it refers, and a reimbursing bank is not concerned with or bound by the terms and conditions of the credit, even if any reference whatsoever to it is included in the reimbursement authorization. Except as provided by the terms of its reimbursement undertaking, a reimbursing bank is not obligated to honour a reimbursement claim.

URR 725 ICC Uniform Rules For Bank-To-Bank Reimbursement

The issuing bank is responsible for providing the information required in these rules in both the reimbursement authorization and the credit, and is responsible for any consequences resulting from non-compliance with this provision. Article 6. All reimbursement authorizations and reimbursement amendments must be issued in the form of an authenticated teletransmission or a signed letter. When a credit or amendment thereto which has an effect on the reimbursement authorization is issued by teletransmission, the issuing bank should advise its reimbursement authorization or reimbursement amendment to the reimbursing bank by authenticated teletransmission.

The teletransmission will be deemed the operative reimbursement authorization or reimbursement amendment, and any subsequent mail confirmation shall be disregarded. An issuing bank must not send to a reimbursing bank: i. If such copies are received by the reimbursing bank they shall be disregarded; ii.

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An issuing bank shall not require a certificate of compliance with the terms and conditions of the credit in the reimbursement authorization. A reimbursement authorization must in addition to the requirement of Article 1 for incorporation of reference to these rules state the following: i.

Uniform rules for bank to bank reimbursement pdf

In the absence of any such indication, the reimbursing bank is authorized to pay any claiming bank; v. A reimbursement amendment must state only the relative changes to the above and the credit number. 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. 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. Any requirement for: i.

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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.

Article 7.

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Expiry of a Reimbursement Authorization Except to the extent expressly agreed to by the reimbursing bank, the reimbursement authorization should not be subject to an expiry date or latest date for presentation of a claim, except as indicated in Article 9. A reimbursing bank will assume no responsibility for the expiry date of a credit and, if such date is provided in the reimbursement authorization, it will be disregarded. The issuing bank must cancel its reimbursement authorization for any unutilized portion of the credit to which it refers, informing the reimbursing bank without delay.

Article 8. Amendment or Cancellation of Reimbursement Authorization 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.

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. 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.

Article 9. Reimbursement Undertaking a.

Uniform rules for bank to bank reimbursement pdf

In addition to the requirements of sub Articles 6 a , b and c of these rules, a reimbursement authorization authorizing or requesting the issuance of a reimbursement undertaking must comply with the provisions of this article.

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. 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. A reimbursement undertaking must indicate the terms and conditions of the undertaking and: i.

The reimbursing bank must also include its charges, if any, that will be deducted from the amount claimed. 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.

A reimbursing bank is irrevocably bound to honour a reimbursement claim as of the time it issues the reimbursement undertaking. 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.

Uniform Rules for Bank-to-Bank Reimbursements(URR 725)

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.

Uniform rules for bank to bank reimbursement pdf

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. A reimbursement undertaking cannot be amended or cancelled without the agreement of the claiming bank.

A reimbursing bank is irrevocably bound as of the time it issues the reimbursement undertaking amendment.

Uniform rules for bank to bank reimbursement pdf

A claiming bank must communicate its acceptance or rejection of a reimbursement undertaking amendment to the reimbursing bank. A reimbursing bank has the right to request that a reimbursement claim be authenticated and, in such case, the reimbursing bank shall not be liable for any consequences resulting from any delay incurred. If a reimbursement claim is made by teletransmission, no mail confirmation is to be sent.

In the event such a mail confirmation is sent, the claiming bank will be responsible for any consequences that may arise from a duplicate reimbursement; ii. When a time draft is to be drawn on the reimbursing bank, the claiming bank must forward the draft with the reimbursement claim to the reimbursing bank for processing, and include the following in its claim: i.

A reimbursing bank assumes no liability or responsibility for any consequences that may arise out of any non-acceptance or delay of processing should the claiming bank fail to follow the provisions of this article. A reimbursing bank shall have a maximum of three banking days following the day of receipt of the reimbursement claim to process the claim.

A reimbursement claim received outside banking hours will be deemed to be received on the next following banking day. If a pre-debit notification is required by the issuing bank, this pre-debit notification period shall be in addition to the processing period mentioned above. If the reimbursing bank determines not to reimburse, either because of a non-conforming claim under a reimbursement undertaking or for any reason whatsoever under a reimbursement authorization, it shall give notice to that effect by telecommunication or, if that is not possible, by other expeditious means, no later than the close of the third banking day following the day of receipt of the claim plus any additional period mentioned in sub-Article i above.

URR 725 – The Uniform Rules for Bank-to-Bank Reimbursements

Such notice shall be sent to the claiming bank and the issuing bank and, in the case of a reimbursement undertaking, it must state the reasons for non-payment of the claim. A reimbursing banks will not process a request for back value value dating prior to the date of a reimbursement claim from the claiming bank. When a reimbursing bank has not issued a reimbursement undertaking and a reimbursement is due on a future date: i. If the reimbursing bank disregards the reimbursement claim, it must so inform the claiming bank by teletransmission or other expeditious means without delay.

Unless otherwise expressly agreed to by the reimbursing bank and the claiming bank, a reimbursing bank will effect reimbursement under areimbursement claim only to the claiming bank. A reimbursing bank assumes no liability or responsibility if it honours a reimbursement claim indicating that a payment, acceptance or negotiation was made under reserve or against an indemnity, and shall disregard such indication.

An issuing bank must not, upon receipt of documents, give a new reimbursement authorization or additional instructions unless they constitute an amendment to, or a cancellation of, an existing reimbursement authorization. If the issuing bank does not comply with the above and a duplicate reimbursement is made, it is the responsibility of the issuing bank to obtain the return of the amount of the duplicate reimbursement.

The reimbursing bank assumes no liability or responsibility for any consequences that may arise from any such duplication. 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. A reimbursing bank assumes no liability or responsibility for errors in translation or interpretation of technical terms. Article 15 Force Majeure A reimbursing bank assumes no liability or responsibility for the consequences arising out of the interruption of its business by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism or by any strikes or lockouts or any other causes beyond its control.

Article 16 Charges a. When honouring a reimbursement claim, a reimbursing bank is obligated to follow the instructions regarding any charges contained in the reimbursement authorization. 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.

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. 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.

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Table of Contents of URR 725

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