The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
The International Chamber of Commerce (ICC) has developed standard rules and guidance to govern letters of credit. The key publications for commercial letters of credit are:
the Uniform Customs and Practice (UCP) for Documentary Credits
the Supplement to UCP for Electronic Presentation, and
the International Standard Banking Practice for the Examination of Documents under Documentary Credits
The vast majority of commercial letters of credit incorporate the UCP.
For more information on commercial letters of credit in general, see Practice Notes:
Characteristics of commercial letters of credit
Types of commercial letters of credit, and
Commercial letters of credit—structure and parties
The UCP is a set of standard terms and conditions which can be incorporated into a letter of credit if the parties concerned wish to use them.
The UCP does not have the force of law but it is internationally recognised.
The provisions of the UCP are not automatically incorporated into a letter of credit. They must be expressly incorporated otherwise they will not apply.
The vast majority of commercial letters of credit incorporate the UCP. Typically banks will require the incorporation of the UCP into a commercial letter of credit. Similarly, it is common for sellers to require a buyer to
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