Uniform CustomsandPracticefor Documentary Credits
(1993Revision)
A.GENERALPROVISIONSANDDEFINITIONS
Article 1.Application ofUCP
TheUniform CustomsandPractice forDocumentary Credits, 1993
Revision,ICCPublicationNo.500,shallapplytoalldocumentary
Credits(includingtotheextenttowhich theymaybeapplicable,
Standby Letter(s) ofCredit)wherethey areincorporatedintothetext
oftheCredit.They arebindingon allpartiesthereto,unless
otherwiseexpressly stipulatedintheCredit.
Article2.MeaningofCredit
ForthepurposesoftheseArticles,theexpressions Documentary
Credit (s)and Standby Letter(s) ofCredit(hereinafterreferredto
asCredit (s) ),mean any arrangement,howevernamed or
described,whereby abank(the IssuingBank) actingattherequest
andontheinstructionsofacustomer (the Applicant) or on itsown
behalf,
i)istomakeapaymenttoortotheorder ofathirdparty(the
Beneficiary),or istoaccept andpaybillsofexchange(Draft(s))
drawnbytheBeneficiary,or
ii)authorizesanotherbanktoeffect suchpayment,or toaccept and
pay suchbillsofexchange(Draft(s)),or
iii) authorizesanotherbanktonegotiate,against stipulated
document(s),providedthatthetermsandconditionsoftheCredit
arecompliedwith.For thepurposesoftheseArticles,branchesofa
bank in different countriesare consideredanotherbank.
Article3.Creditsv.Contracts
a.Credits,bytheirnature,are separatetransactionsfromthe salesor
other contract(s) onwhich theymaybebased andbanksareinno
way concernedwith orboundby such contract(s),even ifany
referencewhatsoever tosuch contract(s) isincludedintheCredit.
Consequently,theundertakingofabanktopay,accept andpay
Draft(s) ornegotiateand/ortofulfill any other obligationunder the
Credit,isnot subjecttoclaimsor defenses
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