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URBPO - ICC Uniform Rules for Bank Payment Obligations - ICC Publication No. 750










Bank Payment Obligations (BPO) is a new tool for international trade finance. It will be located somewhere between open account payments and letters of credit. Banks play a key role on Bank Payment Obligation transactions.













The ICC has set itself an ambitious goal to introduce an innovative way for trading counterparties to secure and finance their open account trade transactions via their banking partners. The new instrument called “Uniform Rules for Bank Payment Obligations” (URBPO; also referred to as ICC URBPO or ICC BPO rules) will enable importers and exporters to involve their preferred banking partners in their trade transactions and get flexible risk and financing services. Based on standardized messaging and advanced transaction matching operated by SWIFT, this new instrument will accelerate the financial supply chain in support of ever accelerating physical supply chains.

What are the headings of URBPO ?

You can find main articles of URBPO or in other words table of contents of URBPO below. URBPO consists of total 17 articles.
Table of Contents of ICC BPO Rules
URBPO - Article 1 Scope
URBPO - Article 2 Application
URBPO - Article 3 General Definitions
URBPO - Article 4 Message Definitions
URBPO - Article 5 Interpretations
URBPO - Article 6 Bank Payment Obligations (BPO) vs. Contracts
URBPO - Article 7 Data vs. Documents, Goods, Services or Performance
URBPO - Article 8 Expiry Date and Submission
URBPO - Article 9 Role of an Involved Bank
URBPO - Article 10 Undertaking of an Obligor Bank
URBPO - Article 11 Amendments
URBPO - Article 12 Charges
URBPO - Article 13 Disclaimer on Effectiveness of Data
URBPO - Article 14 Force Majeure
URBPO - Article 15 Unavailability of a Transaction Matching Application
URBPO - Article 16 Applicable 
URBPO - Article 17 Assignment and Transfer

How URBPO 750 can be applied to Bank Payment Obligations ?

The BPO is an irrevocable undertaking given by a bank to another bank that payment will be made on a specified date after successful electronic matching of data according to an industry-wide set of ICC rules known as Uniform Rules for Bank Payment Obligations( URBOP 750).  Match report will be genereted by SWIFT’s Trade Services Utility (TSU) or any equivalent transaction matching application. One of the key features of the BPO is that it supports interoperability between participating banks, because it makes use of a standard set of ISO 20022 messages.    
        
Some important definitions from URBOP 750 : 
  • "Obligor bank" means buyer's bank under Bank Payment Obligations. Obligor bank issues the legally binding, valid, irrevocable but conditional and enforceable payment undertaking to Recipient Bank. Obligor bank is an equvalent term of issuing bank under letters of credit definitions.
  • "Recipient Bank" means seller's bank  under Bank Payment Obligations. 
  • "Trade Services Utility" (TSU) means a centralised matching and workflow engine providing timely and accurate comparison of data taken from underlying corporate purchase agreements and related documents, such as commercial invoices, transport and insurance.



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What does URBPO mean? 
The URBPO are the Uniform Rules for Bank Payment Obligations ICC publication No. 750. URBPO; also referred to as ICC URBPO or ICC BPO rules was approved by the ICC national committees and entered into force 1 July 2013. 

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