Modern 8anklng SysLems

88M 603
resenLed by
AmlL ParlL
88M (Pons)
087303
1ClC uolfotm costoms ooJ ltoctlces fot
uocomeots ooJ cteJlts
JaL ls uCuC ?
W SeL of rules on lssuance and use of leLLer of
credlLs
W lnLroduced by lCC wen lL came lnLo force ln Le
year 1933
W 1e uC ls uLlllzed by bankers and commerclal
parLles ln more Lan 173 counLrles ln Lrade
flnance
W Some 1113 of lnLernaLlonal Lrade uLlllzes
leLLers of credlL LoLallng over a Lrllllon dollars
eac year
lCC promoLer of uCuC
W lnLernaLlonal Camber of Commerce
esLabllsed ln 1933
W Jas esLabllsed Lo monlLor and promoLe
lnLernaLlonal Lrade amongsL counLrles
W lramed rules Lermed as 'uC' Lo regulaLe leLLer
of credlLs
W keeps on amendlng uC rules as and wen
requlred
W LaLesL verslon ls uC 600 commenced on
1 !uly2007
LeLLer of credlL
W A documenL lssued by a bank wlc wlc
usually provldes an lrrevocable paymenL
underLaklng
W a negoLlable lnsLrumenL used Lo mlnlmlze rlsk
wlle dolng lnLernaLlonal LransacLlons
W used prlmarlly ln lnLernaLlonal
Lrade LransacLlons of slgnlflcanL value for
deals beLween a suppller ln one counLry and a
cusLomer ln anoLer
uC600
W 1e laLesL revlslon of uC ls Le slxL revlslon
of Le rules slnce Ley were flrsL promulgaLed
W seL of 39 arLlcles ls conLalned ln uC600
SLrucLure of uC
1esLrucLure of Le uC600 ls as follows
W ArLlcles 13 lramework of Le uC 600
W ArLlcles 610 SLrucLure of and obllgaLlons under
documenLary credlLs
W ArLlcles 1118 readvlce nomlnaLlon 8elmbursemenL
SLandard for examlnaLlon of
W documenLs ulscrepanL documenLs walver and noLlce
Crlglnals lnvolce
W ArLlcles 1927 1ransporL documenLs
W ArLlcle 28 lnsurance documenLs
W ArLlcles 2937 LxLenslon 1olerance arLlal slpmenL
lnsLalmenLs ulsclalmers lorce
W Ma[eure
W ArLlcles 3839 1ransferable credlLs AsslgnmenL