Forfaiting Glossary

Glossary Items beginning with : U

UCP

ICC Uniform Customs and Practice for Documentary Credits. A set of guidelines, drawn by the International Chamber of Commerce primarily for banks, under which the issuance and handling of Letters of Credit are governed virtually worldwide. The most recent UCP is ICC Publication 600, the 2007 revision. (refer to Bulletin no 6 for the application of UCP in China).

Underlying Transaction

The transaction pursuant to which the payment claim arises, in accordance to URF 800.

Unfair Calling Insurance

Insurance which protects the exporter against a bond which they have issued being called without good reason.

Uniform Rules for Forfaiting

Uniform Rules for Forfaiting (‘URF 800’) are rules that apply to a forfaiting transaction when the parties expressly indicate that their agreement is subject to these rules. Such rules were developed as a joint project by the Banking Commission of the International Chamber of Commerce (ICC) and the International Forfaiting Association (‘IFA’).

URC

Uniform Rules for Collections. A code of practice for banks governing collections, drawn up by the International Chamber of Commerce and observed by most trading nations.

URDG

The Uniform Rules for Demand Guarantees, ICC Publication Latest Version is No. 458.

URF

The Uniform Rules for Forfaiting (ICC Publication No. 800). A set of rules published by the ICC and developed with the IFA. The URF covers both primary and secondary markets and deals with examination of documents and recourse amongst other things. It also includes model agreements.

URR

The ICC Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits (DC) or also known as Letters of Credit (L/C). Latest Version is No. 725.