UNIFORM RULES FOR BANK PAYMENTS UNDER ACCOMPANYING DOCUMENTARY
CREDIT
(USURC)
Chapter I General Provisions
Article 1 Definitions
For the purpose of the present Uniform Rules for Bank Payments under Accompanying Documentary Credit (hereinafter referred to as “USURC”), the following terms shall have the meanings assigned to them hereunder:
(1) “Accompanying Documentary Credit” means an invoice credit/prompt-payment/payment-in-advance/documentary collection which are opened and paid by Banks in accordance with the requirements of the sender and in accordance with the rules and regulations relating to such credit.
(2) “Bank” means any bank, securities firm, trust and fund house, or other financial institution, which enters into a contractual relationship with the sender to provide such services as the issuing of accompanying documentary credit, payment of funds and receipt of documents in accordance with USURC.
(3) “Payee” refers to the person/entity to which payment is to be made in accordance with the terms of USURC.
(4) “Sender” means the person/entity who has contracted for the services of the Bank in providing accompanying documentary credit.
Article 2 Scope of Application
1. These USURC apply to all Bank payments related to an accompanying documentary credit, whenever USURC and the terms of such accompanying documentary credit concur in their description of the payment procedure for such credit.
2. These USURC are to be applied only by those Banks which have expressly committed to do so, and which expressly accept responsibility for following the procedures set forth herein with respect to such payments.
3. These USURC shall come into effect on _____[insert date]_____.
Article 3 Interpretation
If any matter mentioned in these USURC is required by any applicable law, regulation or agreement to be dealt with in a different context, then such matter shall be dealt with in such different context. In such case, the provisions of these USURC shall be modified, amended, or varied accordingly.
Article 4 Amendments
The parties may agree to amend or vary the provisions of these USURC should the circumstances or needs of the parties render such a change necessary or desirable. Any such amendment or variation shall be notified in writing, or by email, by the sender to the Bank and shall be valid from the date set by the sender.
Chapter II Rights and Responsibilities of Parties
Article 5 Rights and Responsibilities of the Sender
1. The sender, being the initiating party, has the responsibility to ensure that all criteria, commitments and requirements set forth in the accompanying documentary credit are fulfilled by both the Bank and the payee.
2. The sender shall also provide adequate information to the Bank for it to be able to make the payment in accordance with the terms of the accompanying documentary credit.
Article 6 Rights and Responsibilities of the Bank
1. The Bank shall be responsible for making the payment in accordance with the terms of the accompanying documentary credit.
2. The Bank shall ensure that all information it collects from the sender and from the payee is accurate and reliable, and that all due diligence efforts in regards to making such payment have been made.
3. The Bank agrees to provide periodic updates and/or reports to the sender regarding the status of payment, when required.
Chapter III Settlement of Payments
Article 7 Payment Process
1. When the Bank has received all of the documents and information required for it to make payment, the Bank shall make payment in the following manner:
(a) Transfer of funds to the approved beneficiary account; and
(b) Upon receipt of payment, the payee shall confirm the receipt of payment and release any documents which may have been retained by the Bank.
2. All payments shall be made in the currency specified in the accompanying documentary credit.
Article 8 Execution of Payments
The Bank shall execute all payments promptly and irrevocably upon receipt of legal documents from the payee.
Article 9 Cost and Charges
1. The sender shall bear the costs and charges for the payment made by the Bank in accordance with the terms of the accompanying documentary credit.
2. The Bank shall inform the sender of all applicable charges for such payment prior to its execution.
3. All charges or fees payable to the Bank shall be paid separately from the payment itself, and shall be paid to the Bank prior to its execution.
Chapter IV Dispute Resolution
Article 10 Dispute Resolution
1. In the event of a dispute between the sender and the Bank relating to the payment made (or to be made) under these USURC, the parties shall endeavor to resolve the matter amicably.
2. Failing an amicable resolution of the dispute, it shall be resolved through arbitration under the rules of the International Chamber of Commerce.
3. The arbitral tribunal shall consist of three arbitrators, one to be appointed by each of the parties to the dispute, and the third to be appointed by the two arbitrators so chosen.
Conclusion
This agreement may be signed in any number of counterparts, each of which shall be deemed to be an original without the necessity of the parties having to sign the original document.
In witness whereof, the parties hereto have signed these USURC on the ____ day of _______, 20__.
Signed for and on behalf of _______
Signed for and on behalf of _______
