URR 725 - The Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits - ICC Publication No. 725
URR 725 has been effective since 01 October 2008. URR 725 is an updated version of previous rules for bank-to-bank reimbursements known as URR 525.
ICC's Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits (URR) have recently been revised. The revision was necessary to bring these long-standing rules into conformity with UCP 600, ICC's universally used rules on letters of credit.
What are the headings of URR 725 ?
You can find main articles of URR 725 or in other words table of contents of URR 725 below. URR 725 consists of total 17 articles.
Table of Contents of URR 725
URR 725 - Article 1 Application of URR
URR 725 - Article 2 Definitions
URR 725 - Article 3 Reimbursement Authorizations Versus Credits
URR 725 - Article 4 Honour of a Reimbursement Claim
URR 725 - Article 5 Responsibility of the Issuing Bank
URR 725 - Article 6 Issuance and Receipt of a Reimbursement Authorization or Reimbursement Amendment
URR 725 - Article 7 Expiry of a Reimbursement Authorization
URR 725 - Article 8 Amendment or Cancellation of a Reimbursement Authorization
URR 725 - Article 9 Reimbursement Undertaking
URR 725 - Article 10 Standards for a Reimbursement Claim
URR 725 - Article 11 Processing a Reimbursement Claim
URR 725 - Article 12 Duplication of a Reimbursement Authorization
URR 725 - Article 13 Foreign Laws and Usages
URR 725 - Article 14 Disclaimer on the Transmission of Messages
URR 725 - Article 15 Force Majeure
URR 725 - Article 16 Charges
URR 725 - Article 17 Interest Claims/Loss of Value
How URR 725 can be applied to bank to bank reimbursements under documentary credits?
The Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits, ICC Publication No. 725, shall apply to any bank-to-bank reimbursement when the text of the reimbursement authorization expressly indicates that it is subject to these rules. They are binding on all parties thereto, unless expressly modified or excluded by the reimbursement authorization. The issuing bank is responsible for indicating in the documentary credit ("credit") that reimbursement is subject to these rules. As with the MT700 - Issue of a Documentary Credit, issuers of an MT740 - Authorization to Reimburse are required to indicate the applicable rules. In this case, URR LATEST VERSION or NOTURR. The use of NOTURR means that the rules stated in UCP 600 article 13 will apply.
Some important definitions from URR 725 :
"Reimbursing bank" means the bank instructed or authorized to provide reimbursement pursuant to a reimbursement authorization issued by the issuing bank
"Reimbursement authorization" means an instruction or authorization, independent of the credit, issued by an issuing bank to a reimbursing bank to reimburse a claiming bank or, if so requested by the issuing bank, to accept and pay a time draft drawn on the reimbursing bank.
"Reimbursement undertaking" means a separate irrevocable undertaking of the reimbursing bank, issued upon the authorization or request of the issuing bank, to the claiming bank named in the reimbursement authorization, to honour that bank's reimbursement claim, provided the terms and conditions of the reimbursement undertaking have been complied with.
"Claiming bank" means a bank that honours or negotiates a credit and presents a reimbursement claim to the reimbursing bank. "Claiming bank" includes a bank authorized to present a reimbursement claim to the reimbursing bank on behalf of the bank that honours or negotiates.
The URR 725 are the Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits ICC publication No. 725. URR 725 was approved by the ICC national committees at the ICC Banking Commission in April 2008. URR 725 has been effective since 01 October 2008.