Compiled by: K.

Adi Swarup
Patnaik18

Performance6R
evocable v. Irr
evocable Credit
s Availability, E
xpiry Date and

Place forPresen
tation7Advising
Banks
LiabilityIssuing
Bank
Undertaking8R
evocation of a
CreditConfirmi

ng Bank
Undertaking9Li
ability of
Issuing and
Confirming
BanksAdvising
of Credits and
Amendments10

Types of
CreditAmendm
ents11Teletran
smitted and Pr
e-Advised Cred
its Teletransmi
tted and PreAdvised Credit

sand
Amendments12
Incomplete or
Unclear
InstructionsNo
mination13Stan
dard for Exami
nation Documen

ts Bank-toBank Reimburs
ementArrange
ments14Discre
pant
Documents and
NoticeStandar
d for

Examination of
Documents15Di
sclaimer on
Effectiveness
of
DocumentsCom
plying
Presentation16

Disclaimer on
the
Transmission
of MessagesDis
crepant
Documents,
Waiver
andNotice17Fo

rce
MajeureOrigina
l Documents
and
Copies18Disclai
mer for Acts
of
an Instructed

PartyCommerci
al
Invoice19Bankto-Bank
Reimbursement
ArrangementsT
ransport
Document

Covering at
LeastTwo
Different
Modes of
Transport20A
mbiguity as the
Issuers of
DocumentsBill

of
Lading21Unspe
cified Issuers
or Contents
of DocumentsN
on-Negotiable
Sea
Waybill22Issua

nce Date of
Documents Vs.
CreditDateCha
rter Party Bill
of
Lading23Marin
e/Ocean Bill of
LadingAir

Transport
Document24No
n-Negotiable S
ea Waybill Roa
d, Rail or Inlan
d Waterway Tr
ansportDocume
nts25Charter P

arty Bill of Ladi

ng Courier Rece
ipt, Post Receip
t orCertificate
of Posting

Compiled by: K.
Adi Swarup
Patnaik19

26Multimodal T
ransport Docu
ments On Deck
", "Shipper's Lo
ad and Count","

Said by
Shipper to
Contain"
andCharges
Additional to
Freight27Air
Transport
DocumentClean

Transport
Document28Ro
ad, Rail or
Inland
Waterway
TransportDocs.
Insurance
Document and

Coverage29Cou
rier and Post
ReceiptsExtens
ion,
Expiry30Trans
port
Documents
issued by

FreightForward
ersTolerance in
Credit Amount,
Quantityand
Unit
Prices31On
Deck, Shippers
Load , Name

of ConsignorPar
tial Drawings
or
Shipments32Cl
ean Transport
DocumentsInst
allment
Drawings or

Shipments33Fr
eight
Payable/Prepai
d
TransportDocu
mentsHours of
Presentation34
Insurance Docu

ments Disclaim
er on Effective
ness of Docume
nts35Type of I
nsurance Cover
Disclaimer on T
ransmission and
Translation36A

ll Risks
Insurance
CoverForce
Majeure37Com
mercial
InvoicesDisclai
mer for Acts
of an

Instructed
Party38Other
DocumentsTran
sferable
Credits39Allow
ances in Credit
Am., Quantity
andUnit

PriceAssignmen
t of
Proceeds40Par
tial
Shipments/Dra
wings

*
41Installment
Shipments/Dra
wings42Expiry
Date and Place
for

Presentation
of Docs.43Limi
tation on the
Expiry
Date44Extensi
on of Expiry
Date45Hours
of

Presentation46
General
Expressions as
to Dates
forShipment

Compiled by: K.
Adi Swarup
Patnaik20

47Date
Terminology
for Periods of
Shipment48Tra
nsferable

Credit49Assign
ment of
Proceeds28.
Important
Changes in the
Articles of
UCP 600 and

their
implication for
the Banks:

A reduction in the
number of
articles from
49 to 39

New articles
on
"Definitions"
and "Interpretat
ions"
providing more
clarityand

precision in the
rules

A definitive
description of
negotiation as
"purchase" of

drafts of
documents

The
replacement of
the
phrase
"reasonable

time" for
acceptance o
rrefusal of
documents by a
maximum
period of five
banking days

New provisions
allow for the
discounting of
deferred paym
ent credits

Banks can now

accept an
insurance
document that
contains
reference toany
exclusion
clause

29.
UCP 600 does
not apply by
default
to letters of
credit issued

after July 1st

2007.
A
statementneed
s to be
incorporated
into the credit
(LC), and

preferably also
into the sales
contract
thatexpressly
states it is
subject to
these rules.30.

Revocable
Credits (Article
2):
One of the
most important
changes in UCP
600 is the
exclusionof any

verbiage
regarding
revocable
letters of
credit, which
can be
amended or
canceled at

anytime
without notice
to the seller.
.Actually,
Article 2
explicitly
defines a
credit as

"anyarrangeme
nt, however
named or
described, that
is irrevocable
and thereby
constitutes
adefinite

undertaking of
the issuing
bank to honour
a complying
presentation."3
1.
Article 3

states that "

A credit is
irrevocable
even if there is
no indication to
that effect."
and
Article 10

makes it clear
that "
a credit can
neither be
amended nor
cancelled
withoutthe
agreement of
the issuing

bank, the
confirming
bank, if any,
and the
beneficiary
"(seller).There
fore, it is
prudent for
the seller to

stipulate in the
sales contract
that the
"buyerwill open
an irrevocable
letter of
credit", and to
check that the

buyer's credit
does, in
fact,either
describe itself
as
"irrevocable"
or state that
it incorporates

UCP 600
(without
exclusion).32.
Definitions and
Interpretations
(Articles 2 and
3)

: A new section
of Definitions
andInterpretat
ions has been
introduced in
the UCP 600.
This includes
definitions of

"Advisingbank",
"Applicant",
"Banking day",
"Beneficiary",
"Complying
presentation",
"Confirmation",
"Confirming

bank", "Credit",
"Honour",
"Issuing bank",
"Negotiation",
"Nominated
bank","Present
ation",
"Presenter". In

addition to
that, the
following terms
are now clearly
defined :"singul
ar/plural",
"irrevocable",
"signatures",

"legalizations",
"Branches of a
bank",
"Termsdescribi
ng issuer of a
document",
"Prompt etc",
"on or about",

"to", "until",
"till",
"from","betwee
n", "before",
"from",
"after", "first
half", "second
half",

"beginning",
"middle", "end".

Compiled by: K.
Adi Swarup
Patnaik21

33.
Deferred
payment
undertakings Articles 7 and 8

:. Articles 7
and 8 establish
a
definiteundert
aking by issuing
and confirming
banks to
reimburse on

maturity
whether or not
thenominated
bank prepaid or
purchased its
own acceptance
or deferred
payment

undertakingbef
ore maturity.
Article 12(b)
expressly
provides
authority from
an issuing bank
to

a nominatedban
k to discount
(prepay or
purchase) a
draft that it
has accepted or
a deferred
paymentundert

aking that it
has given.34.
Advising of
credits - Article
9
: