| Commentary

17 General

| Commentary

4: DOCUMENTARY CREDITS

17 General

In a documentary credit operation a bank, acting on the instructions of its customer (the applicant for credit) makes payment or authorises another bank to make payment to a third party (the beneficiary) on tender of the documents stipulated in the credit.

Almost invariably, applications for credit and the credits themselves state that the credit will be subject to the Uniform Customs and Practice for Documentary Credits (2007 Revision) published by the International Chamber of Commerce, known as ‘UCP 600’1. The Uniform Customs and Practice for Documentary Credits do not, however, apply automatically and must be incorporated

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