{"id":3106,"date":"2018-10-22T15:01:26","date_gmt":"2018-10-22T19:01:26","guid":{"rendered":"http:\/\/www.letterofcredit.biz\/?p=3106"},"modified":"2019-04-06T10:41:08","modified_gmt":"2019-04-06T14:41:08","slug":"urr-725-the-uniform-rules-for-bank-to-bank-reimbursements","status":"publish","type":"post","link":"https:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/22\/urr-725-the-uniform-rules-for-bank-to-bank-reimbursements\/","title":{"rendered":"URR 725 &#8211; The Uniform Rules for Bank-to-Bank Reimbursements"},"content":{"rendered":"<h4><strong>What Does URR 725 Mean?<\/strong><\/h4>\n<p>The URR 725 are the Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits ICC publication No. 725.<\/p>\n<p>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.<\/p>\n<p style=\"text-align: left;\">URR 725 is an updated version of previous rules for bank-to-bank reimbursements known as URR 525.<\/p>\n<p style=\"text-align: left;\">The revision was necessary to bring these long-standing rules into conformity with UCP 600, ICC&#8217;s universally used rules on letters of credit.<\/p>\n<h4><strong>What is the Scope of URR 725?<\/strong><\/h4>\n<p>The Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits, ICC Publication No. 725, shall apply to any bank-to-bank reimbursement under documentary credits, when the reimbursement authorization expressly indicates that it is subject to these rules.<\/p>\n<p>The rules are binding on all parties thereto, unless expressly modified or excluded by the reimbursement authorization.<\/p>\n<h4><strong>How URR 725 Can be Applied to Bank to Bank Reimbursements under Documentary Credits?<\/strong><\/h4>\n<p><a href=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/URR-725-bank-to-bank-reimbursement-rules.png\"><img decoding=\"async\" class=\"alignleft wp-image-3117 size-medium\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/URR-725-bank-to-bank-reimbursement-rules-209x300.png\" alt=\"URR 725 \u2013 The Uniform Rules for Bank-to-Bank Reimbursements\" width=\"209\" height=\"300\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/URR-725-bank-to-bank-reimbursement-rules-209x300.png 209w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/URR-725-bank-to-bank-reimbursement-rules-292x420.png 292w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/URR-725-bank-to-bank-reimbursement-rules.png 354w\" sizes=\"(max-width: 209px) 100vw, 209px\" \/><\/a>The issuing bank is responsible for indicating in the documentary credit that the reimbursement is subject to URR 725.<\/p>\n<p>As a result, both <a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/05\/mt-700-swift-message-field-specifications\/\">MT700 &#8211; Issue of a Documentary Credit<\/a> and <a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/08\/mt-740-authorisation-to-reimburse\/\">MT740 &#8211; Authorization to Reimburse<\/a> swift messages must indicate the applicable rules.<\/p>\n<p>Under MT700 swift message URR LATEST VERSION or NOTURR are the options regarding reimbursements.<\/p>\n<ul>\n<li>URR LATEST VERSION means\u00a0that URR rules will apply to the bank to bank reimbursements.<\/li>\n<li>NOTURR means that not URR rules but UCP 600 article 13 will apply to the bank to bank reimbursements..<\/li>\n<\/ul>\n<h4><strong>Table of Contents of URR 725<\/strong><\/h4>\n<p>URR 725 consists of total 17 articles.<\/p>\n<ul>\n<li>URR 725 &#8211; Article 1 Application of URR<\/li>\n<li>URR 725 &#8211; Article 2 Definitions<\/li>\n<li>URR 725 &#8211; Article 3 Reimbursement Authorizations Versus Credits<\/li>\n<li>URR 725 &#8211; Article 4 Honour of a Reimbursement Claim<\/li>\n<li>URR 725 &#8211; Article 5 Responsibility of the Issuing Bank<\/li>\n<li>URR 725 &#8211; Article 6 Issuance and Receipt of a Reimbursement Authorization or Reimbursement Amendment<\/li>\n<li>URR 725 &#8211; Article 7 Expiry of a Reimbursement Authorization<\/li>\n<li>URR 725 &#8211; Article 8 Amendment or Cancellation of a Reimbursement Authorization<\/li>\n<li>URR 725 &#8211; Article 9 Reimbursement Undertaking<\/li>\n<li>URR 725 &#8211; Article 10 Standards for a Reimbursement Claim<\/li>\n<li>URR 725 &#8211; Article 11 Processing a Reimbursement Claim<\/li>\n<li>URR 725 &#8211; Article 12 Duplication of a Reimbursement Authorization<\/li>\n<li>URR 725 &#8211; Article 13 Foreign Laws and Usages<\/li>\n<li>URR 725 &#8211; Article 14 Disclaimer on the Transmission of Messages<\/li>\n<li>URR 725 &#8211; Article 15 Force Majeure<\/li>\n<li>URR 725 &#8211; Article 16 Charges<\/li>\n<li>URR 725 &#8211; Article 17 Interest Claims\/Loss of Value<\/li>\n<\/ul>\n<h4><strong>Definitions from URR 725:<\/strong><\/h4>\n<ul>\n<li>&#8220;<span style=\"color: #ff6600;\">Reimbursing bank<\/span>&#8221; means the bank instructed or authorized to provide reimbursement pursuant to a reimbursement authorization issued by the issuing bank<\/li>\n<li>&#8220;<span style=\"color: #ff6600;\">Reimbursement authorization<\/span>&#8221; 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.<\/li>\n<li>&#8220;<span style=\"color: #ff6600;\">Reimbursement undertaking<\/span>&#8221; 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&#8217;s reimbursement claim, provided the terms and conditions of the reimbursement undertaking have been complied with.<\/li>\n<li>&#8220;<span style=\"color: #ff6600;\">Claiming bank<\/span>&#8221; means a bank that honours or negotiates a credit and presents a reimbursement claim to the reimbursing bank. &#8220;Claiming bank&#8221; includes a bank authorized to present a reimbursement claim to the reimbursing bank on behalf of the bank that honours or negotiates.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What Does URR 725 Mean? 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<\/p>\n","protected":false},"author":1,"featured_media":3108,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[371,366],"tags":[369,255],"class_list":["post-3106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-letter-of-credit-rules","category-rules","tag-letter-of-credit-rules","tag-urr-725"],"_links":{"self":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/3106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/comments?post=3106"}],"version-history":[{"count":0,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/3106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media\/3108"}],"wp:attachment":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media?parent=3106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/categories?post=3106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/tags?post=3106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}