ICC’s Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits (URR) have been updated. The update, ICC Publication No. 725, was necessary to bring these long-standing rules into conformity with UCP 600, ICC’s universally used rules on letters of credit, which came into effect on 1 July, 2017.
The updated text was reviewed by the Banking Commission and presented to ICC National Committees in winter 2008. Dan Taylor (US), Vice Chair of the Banking Commission, presented the update at the ICC Banking Commission meeting in Athens on 16 April, 2008, where it was approved.
URR 725 contains a number of technical changes from the previous version, URR 525, and will be used by letter of credit practitioners who elect to incorporate the revised URR into their letter of credit. For instance, Article 1 was changed to indicate “express indication”, as in UCP 600, Article 1 was changed for “operative reimbursement authorisation” again to align the words with terms used in UCP 600. In Article 9G, an addition was made (“when you are bound with the issuance”). It was also decided to remove from Article 11E the reference to reserve or indemnity. The rules were also updated to define “honour” as it appears in UCP 600.
As decided at the Banking Commission meeting on 15-16 April, 2008, the updated text will come into effect on 1 October, 2008.