Chapter

Subject

PART ONE:

1

The evolution of UCP 600

1.1       The story so far

1.2       Schedule of events

1.3       Why was this revision necessary?

1.4       The compulsions for revising the UCP

1.5       The initial considerations

1.6       UCP revision – the early phase

1.7       Continuation of the revision process

1.8       The key issues

1.8.1     Capitalising defined terms and words

1.8.2      And/or

1.8.3      On its face

1.8.4       ‘Parties’ or ‘banks’

1.8.5       Reasonable time

1.8.6       International Standard Banking Practices (ISBP)

1.8.7       Negotiation

1.8.8       Discounting of Deferred Payments

1.8.9       Article 28 of UCP 500

1.8.10    Article 30 of UCP 500

1.9       New articles for UCP 600

1.10    The other important issues

1.11    UCP 500 articles not incorporated into UCP 600

1.11.1      Articles excluded in the UCP 600

1.11.2      Reasons for exclusion of the articles

1.12    Articles in UCP 600 not available in UCP 500

1.13    Comments on a few other topics

1.13.1      Unless otherwise expressly stipulated in the credit

1.13.2      Honour, Negotiation

1.13.3      URR 525

1.13.4      eUCP

1.13.5      Topics listed under Section 1.6.3

1.13.6      About some of the other articles

1.14    The meetings

1.15    Conclusion

2

Major issues in UCP 500

2.1       Preamble

2.2       Articles of major concern

2.2.1   The seven articles identified

2.2.2    ICC note on discrepant documents

2.2.3    Article 48 on Transferable Credits

2.2.4    The Position Papers

2.3       Other articles causing concern

2.4       The problem articles

2.5       UCP 500, Article 9

2.5.1   The issues in Article 9

2.5.2    Liability of the issuing bank

2.5.3    LC available by draft on applicant

2.5.4    Amendments

2.5.5    Without delay

2.5.6    Negotiation

2.5.7     Court decisions regarding discounting of deferred payment undertakings

2.6       UCP 500, Article 13

2.6.1     The critical issues in Article 13

2.6.2     Definition of the term ‘banking days’

2.6.3     Dates of certificates

2.6.4     Reasonable time

2.6.5     Language in documents

2.6.6     Mathematical calculations

2.6.7     Goods consigned direct to applicant

2.6.8     Documents not called for in the credit

2.6.9     Last date for presentation, negotiation etc.

2.6.10   How these issues were resolved

2.6.11   Non-documentary conditions

2.6.12   Data in documents

2.6.13   Other related issues in Article 13

2.7       UCP 500, Article 14

2.8       UCP 500, Article 21

2.8.1      Issuer of a document and its data content

2.8.2      Need not be a mirror image

2.8.3      Date of document

2.8.4      Name or title of document

2.8.5      Transport document

2.9       UCP 500, Article 23

2.9.1      The key issues in Article 23

2.9.2      How the issues were resolved

2.10    UCP 500, Article 37

2.10.1    Issues with regard to invoice

2.10.2    Response to these issues

2.11    UCP 500, Article 48

2.12    From UCP 500 to UCP 600, what has changed?

2.13    Conclusion

3

Commentaries on certain key issues

Note 1: The meaning of ‘negotiation’ (and related issues).

1.0       Preamble

2.0       Negotiation: an enduring controversy

3.0       ‘Negotiation’ and the ICC

4.0       Concern about correct interpretation

5.0       Interpreting ‘negotiation’ and related terms

6.0       The terms explained

6.1    Payment with or without recourse

6.2    Payment under reserve

6.3    Meaning of the term ‘payment’

7.0       (LC available by) negotiation, acceptance, or by payment

7.1    Types of LCs defined

7.2    Negotiation: additional comments

8.0       Types of LCs and recourse payment

9.0       ‘Engagement’ explained

9.1    With engagement, without engagement

9.2    UCP 600, Article 12 on ‘Nomination’

10.0    Summing up

Note 2: The implications of a non-bank issuing letter of credit.

(a)    LCs issued by large corporate houses

(b)    The relevance of such LCs

(c)    The UCP and LCs issued by non-banks

(d)    Advantages of LCs issued by banks

(e)    Banks advising LCs issued by non-banks

Note 3: Comments on some of the articles in UCP 600 & ISBP.

(1)    Article 2, Definitions

(2)    Articles 2 (Definitions) & 3 (Interpretations)

(3)    Article 9, Advising of Credits and Amendments

(4)    Article 10, Amendments

(5)    Article 10.c, Amendments

(6)    Article 10.e, Amendments

(7)    Article 13, Bank-to-Bank reimbursement Arrangements

(8)    Article 14.b, Standard for Examination of Documents

(9)    Article 14.b, Standard for Examination of Documents

(10) Article 16, Discrepant Documents, Waiver and Notice

(11) Article 16, Discrepant Documents, Waiver and Notice

(12) Article 20, Bill of Lading

(13) Article 20, Bill of Lading

(14) Article 20, Bill of Lading, and Article 21, Non-Negotiable Sea Waybill

(15) Article 37, Disclaimer for Acts of Instructed Party

(16) ISBP 645/681

Note 4: Implications of Article 14.(b) and their possible impact on documentary credit operations.

PART TWO:

Analysis of the articles of UCP 600 – Articles 1 to 39.

Chapter

Title

Author’s Notes

1.       

Evolution of the Foreign Exchange market

2.       

Methods of Payment

3.       

International Remittances – basics

4.       

International Remittances – techniques

5.       

Remittances –  in practice

6.       

Correspondent banking

7.       

Processing clean instruments (outward)

8.       

Reconciliation of Nostro accounts

9.       

Transaction pricing – the untold story

10.    

Correspondent banking – opportunities untapped

11.    

Mirror accounts

12.    

Estimating Exchange profit

13.    

IBD- profiling the job description

14.    

About Dealing Room and Treasury Operations

15.    

Basics of Exchange Rates

16.    

Exchange rate Mechanism

17.    

Merchant rates

18.    

Exchange Arithmetic

19.    

Forward Contracts, Swaps

20.    

Financial Futures and Options – I

21.    

Financial Futures and Options – II

22.    

Risk Management in Foreign Exchange

23.    

UCP 500, LCs & International Trade

24.    

Financing International Trade

25.    

For the knowledge bank

Standard trems explained (9 pages)

Glossary (23 pages)

Annexures (18 in no. – 97 pages)