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Uniform Rules for Collections, URC 522


URC 522

The URC 522 are the Uniform Rules for Collections. URC 522 came into effect on 01 January 1996.

Uniform Rules For Collection (URC 522)

Subhead

The ICC Uniform Rules for Collections were first published by the ICC in 1956. Revised versions were issued in 1967 and 1978

This present revision was adopted by the Council of the ICC in June 1995, for issue as ICC Publication N°522.

This English language edition gives the official text of the 1994 Revision. Translations in other languages may be available from ICC National Committees

Published in July 1995 by ICC PUBLISHING S.A. (Paris) and ICC PUBLISHING, INC. (New York) Please note that the title or classification on the heading of each Article is for reference as to intent and purpose. It is not to be construed as being other than solely for benefit or guidance and there should be no legal imputation.

Footnote

The Working Party would like to take this opportunity to thank all National Committees and others for their participation in this work. Over 2000 comments were painstakingly examined and analysed and, in so doing, the WP was able to obtain an insight into problems and practices worldwide - this proved to be of great value and assistance in completing this work.

In particular, the WP would like to thank the following National Committees, Associations, and Organisations and individuals, by name.

1) ICC National Committees:

Australia, Austria, Colombia, Cyprus, Denmark, Finland, France, Germany, Iran, Israel, Italy, Japan, Norway, Singapore, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.

2) Associations and Organisations:

Akbank (Turkey), Antiochian Commercial Bank, Asociación de Bancos del Uruguay, Association of Banks in Singapore, Association of Cyprus Commercial Banks, Associazione Bancaria Italiana, Banco Bancoquia (Colombia), Banco Anglo Colombiano (Colombia), Banco de Bogota (Colombia), Banco do Brasil S.A., Banco del Estado (Colombia), Banco Nacional de Cuba, Banco Popular Español, Banco Sabadell (Spain), Banco Union Colombiano (Colombia), Bank Association of Slovenia, Bankhaus Trinkaus & Burkhardt (Germany), British Bankers' Association (Trade Facilitation Consultative Group), Canadian Bankers' Association, Central Hispaño (Spain), Chemical Bank (USA), Citibank (USA), Clearing Bankers Association (South Africa), Courtaulds Export (UK), Den Danske Bank (Denmark), Deutscher Sparkassenund Giroverband (Germany), DG Bank (Germany), Emlak Bankasi (Turkey), FELABAN (Federation of Latin American Banks), Finansradet (Denmark), Foreign Exchange Dealers' Association of India, Forex Club Argentino, German Banking Federation, German Savings Banks Organisation, Hellenic Bank Association, The Hong Kong Association of Banks, Internationale Nederlanden Bank, Israel Discount Bank, Japan Foreign Trade Council, Nederlandse Vereniging van Banken, Nordbanken (Sweden), Overseas Union Bank Ltd (Singapore), Serfin Financial Group (Mexico), State Bank (Colombia), Swiss Bank Corporation, T.O. Lee Consultants Ltd (Hong Kong), Texas Commerce Bank N.A. (USA), Turk Ekonomi Bankasi (Turkey), Udruzenje Banaka Jugoslavije, Unibank (Denmark), United States Council on International Banking, Inc., Westpac Banking Corporation (Australia)

3) Individuals:

Ferdinand Müller, Technical Advisor, ICC Banking Commission, Deutsche Bank AG (Germany) Bernard Wheble, CBE (UK) Charles del Busto, Chairman, ICC Banking Commission Sia Chee-Hong, Overseas Union Bank Ltd. (Singapore) The WP would also like to express their appreciation for the assistance of - Stefan Draszczyk, former Head of Banking Division, ICC Paris - Carlos Velez-Rodriguez, Head of Banking Division, ICC Paris - Secretaries, ICC Paris Bob Mansell and Sue Davis, The Hongkong and Shanghai Banking Corporation, Ltd. ( London) and - Members of the ICC Banking Commission

Foreword

The raison d'être for the existence of the ICC is to facilitate trade among the world's trading countries, within which one of our core tasks is an ongoing review of international trade practices in various fields.

Accordingly, the ICC undertook a review of the Uniform Rules for Collections in March 1993, and these revised rules, which represent the culmination of the revision work, have were drafted by international experts drawn from the private sector who have worked in ICC Commissions over the last two years.

The review covered changes in collection procedures, technology, and laws and regulations, both national and international.

From the perspective of the ICC, a significant achievement of the revision is that National Committees and experts from all parts of the world took an active part in the discussions and made a positive contribution to the work.

These revised rules and their unanimous adoption by members of the ICC Banking Commission, which has a wide international representation, are a source of pride to us all, and the extensive and fruitful international consultation which preceded this work is the hallmark of the ICC.

Jean-Charles Rouher

Secretary General of the ICC

Preface

In keeping with the ICC policy of staying abreast of changes in international commerce, the ICC Banking Commission initiated a revision of Uniform Rules for Collections in March 1993, and these revised rules represent the work of the ICC Working Party entrusted with the revision project since that time.

The revised rules, which come into effect on 1 January, 1996, replace the Uniform Rules for Collections, ICC publication N°322, in force since January 1979. There is a separate new ICC publication, N°550, containing a comprehensive commentary covering relevant discussions that took place during the revision process. The commentary, which is intended to give guidance on practical issues and to provide an insight into the thinking of the Working Party, is not meant to replace the rules in any way.

The objectives of the Working Party were to review changes in international collection procedures, technology, and laws and regulations both national and international since 1979. Similarly, issues that continue to cause problems to practitioners were to be examined to see the extent to which the revision could assist in their resolution.

Additionally, the text and language of UCP 500 were to be examined in order to achieve a degree of harmonisation within the revision.

In the course of its work over the last two years, the Working Party examined approximately 2,500 comments from over 30 countries. In certain cases, such as in considering of Electronic Data Interchange, the Working Party felt that uncertainty on legal issues precluded any attempt to draft rules to cover this aspect at the present time.

Similarly, while the importance of local practices and requirements in certain countries were fully appreciated by the Working Party, it was considered unwise to draft rules to cover such practices and requirements, as they might not be acceptable to the rest of the international community.

In considering an extensive range of views and comments, the Working Party had considerable difficulty in evaluating some of them, and, where conflicting views were expressed, the Working Party adopted the point of view closest to, and most consistent with, accepted international practice.

The Working Party, in achieving its objectives, did not seek to make change for the sake of change and often left the wording of the old rules substantially unchanged. Changes were made only in response to altered practices and requirements and to resolve practical difficulties encountered by practitioners.

The Working Party, in achieving its objectives, did not seek to make change for the sake of change and often left the wording of the old rules substantially unchanged. Changes were made only in response to altered practices and requirements and to resolve practical difficulties encountered by practitioners.

I list below in alphabetical order the members of the Working Party: JUNEID M. BAJUNEID Assistant Manager Trade Services, the National Commercial Bank, Jeddah CARLO DI NINNI Documentary Credit Department, Associazione Bancaria Italiana, Rome STEFAN DRASZCYK Former Head of Division, International Chamber of Commerce, Paris BERND HOFFMANN Direktor, Trinkaus & Burkhardt KGaA, Düsseldorf ROB F. LANTING Senior Manager, Documentary Trade Department, ING Bank, Amsterdam PETER OSTWALD Vice President, Trade Finance Department, Nordbanken, Gothenburge

Finance Department, PAUL C. RUSSO Vice President, United States Council for International Banking, New York SIA CHEE-HONG Vice President Bills and Remittances, Overseas Union Bank Ltd, Singapore CARLOZ VELEZ-RODRIGUEZ Head of Division, International Chamber of Commerce, Paris The undersigned had the pleasure of chairing the Working Party.

As Chairman, I extend my deep appreciation to the ICC National Committees, the Banking Commission and the individual members of the Working Party. It was through the generous contribution of their time and the sharing of their knowledge that this revision was accomplished so successfully. I also wish to convey the gratitude of the ICC for their selfless commitment to this work.

LAKSHMAN, Y. WICKREMERATNE ACIB Chairman, ICC Working Party on Collections Former Manager Services, The Hongkong and Shanghai Banking Corporation Ltd, London Chairman, British Bankers' Association Trade Facilitation Group, 1992-1994 Copyright

Copyright © 1995 International Chamber of Commerce All rights reserved. No part of this work may be reproduced or copied in any form or by any means - graphic, electronic or mechanical, including photocopying, recording, taping or information retrieval systems - without the written permission of ICC Publishing S.A, or ICC Publishing, Inc. for the USA. ICC Publication N° 522 ISBN 92-842-1184.0

URC 522 - Article 1

ARTICLE 1 APPLICATION OF URC 522

a) The Uniform Rules for Collections, 1995 Revision, ICC Publication No. 522, shall apply to all collections as defined in Article 2 where such rules are incorporated into the text of the "collection instruction" referred to in Article 4 and are binding on all parties thereto unless otherwise expressly agreed or contrary to the provisions of a national, state or local law and/or regulation which cannot be departed from.

b) Banks shall have no obligation to handle either a collection or any collection instruction or subsequent related instructions.

c)If a bank elects, for any reason, not to handle a collection or any related instructions received by it, it must advise the party from whom it received the collection or the instructions by telecommunication or, if that is not possible, by other expeditious means, without delay.

URC 522 - Article 2

ARTICLE 2 DEFINITION OF COLLECTION

For the purposes of these Articles:

a) "Collection" means the handling by banks of documents as defined in sub-Article 2(b), in accordance with instructions received, in order to:

       1) obtain payment and/or acceptance, or

       2) deliver documents against payment and/or against acceptance, or

       3) deliver documents on other terms and conditions.

b) "Documents" means financial documents and/or commercial documents:

       1) "Financial documents" means bills of exchange, promissory notes, cheques, or other similar instruments used for obtaining the payment of money;

       2) "Commercial documents" means invoices, transport documents, documents of title or other similar documents, or any other documents whatsoever, not being financial documents.

c) "Clean collection" means collection of financial documents not accompanied by commercial documents.

d) "Documentary collection" means collection of:

       1) Financial documents accompanied by commercial documents;

       2) Commercial documents not accompanied by financial documents.

URC 522 - Article 3

ARTICLE 3 PARTIES TO A COLLECTION

a) For the purposes of these Articles the "parties thereto" are:

       1- the "principal" who is the party entrusting the handling of a collection to a bank;

       2-the "remitting bank" which is the bank to which the principal has entrusted the handling of a collection;

       3- the "collecting bank" which is any bank, other than the remitting bank, involved in processing the collection;

       4- the "presenting bank" which is the collecting bank making presentation to the drawee.

b) The "drawee" is the one to whom presentation is to be made in accordance with the collection instruction.

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Proposed by: Jacques Guiffo Temgo On 16/04/2009 - 19h57 Last update: 17/04/2009 - 22h47  Write your TUTORIAL
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