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Details

UCP 600
Letters of Credit
32
Business
Professional
12/28/2012

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Cards

Term
Advising Bank
Definition
the bank that advises (authentication and informing of openess) the credit at the request of the issuing bank.
Term
Issuing Bank
Definition
The bank that issues a credit at the request of an applicant or on its own behalf.
Term
Applicant
Definition
The party on whose request the credit is issued.
Term
Beneficiary
Definition
The party in whose favour a credit is issued.
Term
Banking day
Definition
Means a day on which a bank is regularly open at the place at which an act subject to these rules is to be performed.
Term
Complying Presentation
Definition
A presentation that is in accordance with the terms and conditions of credit, the applicable provisions of these rules and international standard banking practice.
Term
Confirming Bank
Definition
The bank that adds its confirmation to a credit upon the issuing bank's authorization or request.
Term
Credit
Definition
Any arrangement however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation.
Term
To Honour (three parts)*
Definition
a. To pay at sight if the credit is available by sight payment.
b. To incur a deferred payment undertaking and pay at maturity if the credity is available by deferred payment.
c. To accept a bill of exchange ("draft") drawn by the beneficiary and pay at maturity if the credit is available by acceptance.
Term
Negotiation
Definition
The purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank.
Term
Nominated Bank
Definition
The bank with which credit is available or any bank in the case of a credit availabel with any bank.
Term
Presentation
Definition
Either the delivery of documents under a credit to the issuing bank or nominated bank or the documents so delivered.
Term
Presenter
Definition
A beneficiary, bank or other party that makes a presentation.
Term
Credit is irrevocable even if there is no indication to that effect
Definition
Term
Branches of a bank in different countries are considered to be separtate banks.
Definition
Term
A credit by its nature is a separate transaction form the sale or other contract on which it may be based. Banks are in no way concerned with or bound by such a contract.
Definition
Term
An issuing bank should discourage any attempt by the applicant to include, as an integral part of the credit, copies of the underlying contact, proforma invoice and the like.
Definition
Term
A credit must state the bank it is available with or whether it is available with any bank.
Definition
Term
A credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation.
Definition
Term
A credit must state an expiry date for presentation. An expirty date stated for honour or negotiation will be deemed to be an expiry date for presentation.
Definition
Term
The place of the bank with which the credit is available is the place for presentation. The place for presentation under a credit available with any bank is that of any bank. A place for presentation other than that of the issing bank is in addition to the place of the issuing bank.
Definition
Term
Deferred Payment
Definition
An agreement to allow postponement of payments due, offered as customer incentives or conveniences, offered as a feature in loans (such as graduated-payment mortgages), or authorized by courts as part of debt-workout plans desgned to help insolvent individuals and businesses.
Term
By advising the credit or amendment, the advising bank signifies that it has stisfied itself sd to the apparent authenticity o the credit or amendment and that the advice accurately reflects the terms and conditions of the credit or amendment recieved.
Definition
Term
Except as otherwise provided by aricle 38, a credit can neither be amended nor cancelled without the agreement of the issuing bank, the confirming bank, if any, and the beneficiary.
Definition
Term
Receipt or examination and forwarding of documents by a nominated bank that is not a confiming bank does not make that nominated bank liable to honour or negotiate, nor does it constitute honour or negotiation.
Definition
Term
The beneficiary should give notification of acceptance or rejection of an amendment. If the beneficiary fails to give such notification, a presentation that complies with the credit and to any not yet accepted amendment will be deemed to be notification of acceptance by the beneficiary of such amendment.
Definition
Term
A nominated bank acting on its nomination. a confiming bank, if any, and the issuing bank shall each have a maximum of five banking days following the day of presentation to determine if a presentation is complying.
Definition
Term
When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank determines that a presentation does not comply, it may refuse to honour or negotiate.
Definition
Term
Original Documents and Copies
Definition
At least one original of each document stipulated in the credit must be presented.
Term
Commerical Invoice
Definition
must appear to have been issued by the beneficiary, made out in the name of the applicant, same currency as the credit, and need not be signed.
Term
A transport document covering at least two different modes of transport, must appear to:
Definition
indicate the carrier and be signed by the carrier, master or an agent on behlaf of the two.
Term
Bill of Lading
Definition
Indicate the name of the carrier and signed by the carrier, master or named agent. Indicate that the goods have been shipped on board a named vessel at the port of loading. Indicate shipment from the port of loading to the port of discharge.Be the sole original bill of lading, contain no indication that it is subject to a acharter party, and contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage.
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