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Uniform Rules For The Collection of Commercial Paper
Uniform Rules For The Collection of Commercial Paper
(Valid From:1948.01.01)
a. These provisions and definitions and the following articles apply to all
collections of commercial paper and are binding upon all parties thereto
unless otherwise expressly agreed or unless contrary to the provisions of
a national, state or local law and/or regulation which cannot be departed
from.
(ii) The "parties thereto" are the principal who entrusts the operation of
collection to his bank (the customer), the said bank (the remitting bank),
and the correspondent commissioned by the remitting bank to see to the
acceptance or collection of the commercial paper (the collecting bank).
(iii) The "drawee" is the party specified in the remittance letter as the one
to whom the commercial paper is to be presented.
If the collecting bank cannot, for any reason, comply with the instructions
given in the remittance letter received by it, it must advise the remitting
bank immediately.
In the case of commercial paper payable at a usance other than sight the
collecting bank must, where acceptance is called for, make presentation
for acceptance without delay, and must, in every instance, make
presentation for payment not later than the appropriate maturity date.
Article 8. The collecting bank is responsible for seeing that the form of the
acceptance appears to be complete and correct, but is not responsible for
the genuineness of any signature or for the authority of any signatory to
sign the acceptance.
In the absence of such specific instructions the banks concerned with the
collection are not responsible for any failure to have the commercial paper
protested (or subjected to legal process in lieu thereof) for non-payment or
non-acceptance.
The collecting bank is not responsible for the regularity of the form of the
protest (or other legal process).
Article 10. If the customer nominates a representative to act as case-ofneed in the event of non-acceptance and/or non-payment the remittance
letter should clearly and fully indicate the powers of such case-of-need.
If, however, the collecting bank considers the matter to be urgent, it may
advise by other quicker methods at the expense of the customer.
Article 15. In all cases where in the express terms of a collection, or under
these Rules, disbursements and/or expenses and/or collection charges
are to be borne by the customer, the collecting bank is entitled to recover
its outlay in respect of disbursements and expenses and its charges from
the remitting bank and the remitting bank has the right to recover from the
customer any amount so paid out by it, together with its own
disbursements, expenses and charges.
Article 16. Banks utilising the services of another bank for the purpose of
giving effect to the instructions of the customer do so for the account of
and at the risk of the latter.
Banks are free to utilise as the collecting bank any of their correspondent
banks in the country of payment or acceptance as the case may be.
Article 19. In the event of goods being despatched direct to the address of
a bank for delivery to a drawee against payment or acceptance or upon
other terms without prior agreement on the part of that bank, the bank has
no obligation to take delivery of the goods, which remain at the risk and
responsibility of the party despatching the goods.