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eUCP Version 2.0 and eURC Version 1.0 available for download

25/06/2019 The ICC has now made available the above supplements to UCP and URC. The documents can be downloaded here eUCP Version 2.0.pdf and eURC Version 1.0.pdf


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Recent News

ICC release Incoterms 2020 11/09/2019

On 10 September, the ICC officially released the new version of Incoterms (to be known as Incoterms 2020)...more

BAFT release guidance paper relating to the use of automatic extension clauses 27/06/2019

BAFT (Bankers Association for Finance and Trade) has released a guidance paper relating to the use of auto-extension clauses in standby letters of credit and demand guarantees...more

Latest Question

I refer to UCP 600 sub-article 7 (c) which indicates that "An issuing bank undertakes to reimburse a nominated bank that honoured or negotiated a complying presentaation ….." My interpretation of this article is the following: If a nominated bank honours or negotiates a complying presentation and duly forwards the documents to the issuing bank, the issuing bank takes the firm commitment to pay the nominated bank even if the seller-beneficiary of the L/C has previously issued an assignment of proceeds in favour of a third party and that this assignment of proceeds has been accepted by the issuing bank and notified to the third party. I would say that in such a situation, the nominated bank has no need to request any assignment of proceeds as there is a direct firm commitment from the issuing bank to pay them. 1) Do you agree with me ? 2) If the beneficiary of the L/C has issued an assignment of proceeds in favour of a third party, and this assignment has been accepted by the issuing bank, will the issuing bank pay this third party whereas it has already paid the nominated bank? (normally according to sib-article 7 (c) "the issuing bank undertaking to reimburse the nominated bank is independent of the issuing bank undertaking to the beneficiary". Let me have your advice. 3) If we consider the same situation, but we suppose that the bank which negotiates or honours a complying presentation is not a nominated bank, then there is no direct undertaking to pay that bank, which means that the bank has every interest to obtain an assignment of proceeds from the beneficiary of the L/C otherwise if an assigment of proceeds has been made by the beneficiary of the L/C in favour of somebody else, the negotiating bank will not be paid by the issuing bank. Do you agree with me?