"ПРАВИЛА МЕЖДУНАРОДНОЙ ПРАКТИКИ РЕЗЕРВНЫХ АККРЕДИТИВОВ (isp98)" [англ.](Публикация Международной торговой палаты n 590)
INTERNATIONAL CHAMBER OF COMMERCE
INTERNATIONAL STANDBY PRACTICES
(ICC publication No. 590)
Scope, application, definitions, and
interpretation of these Rules
1.01 Scope and Application
a. These Rules are intended to be applied
to standby letters of credit (including performance, financial, and direct pay
standby letters of credit).
b. A standby letter of credit or other
similar undertaking, however named or described, whether for domestic or
international use, may be made subject to these Rules by express reference to
c. An undertaking subject to these Rules may expressly modify or
exclude their application.
d. An undertaking subject to these Rules is
hereinafter referred to as a "standby".
1.02 Relationship to Law and Other
a. These Rules supplement the applicable law to the extent not
prohibited by that law.
b. These Rules supersede conflicting provisions
in any other rules of practice to which a standby letter of credit is also made
1.03 Interpretative Principles
These Rules shall be
interpreted as mercantile usage with regard for:
a. integrity of
standbys as reliable and efficient undertakings to pay;
b. practice and
terminology of banks and businesses in day-to-day transactions;
consistency within the worldwide system of banking operations and commerce;
d. worldwide uniformity in their interpretation and application.
1.04 Effect of the Rules
Unless the context otherwise requires, or
unless expressly modified or excluded, these Rules apply as terms and conditions
incorporated into a standby, confirmation, advice, nomination, amendment,
transfer, request for issuance, or other agreement of:
i. the issuer;
ii. the beneficiary to the extent it uses the standby;
iv. any confirmer;
v. any person nominated in the
standby who acts or agrees to act; and
vi. the applicant who authorises
issuance of the standby or otherwise agrees to the application of these
1.05 Exclusion of Matters Related to Due Issuance and Fraudulent or
These Rules do not define or otherwise provide for:
a. power or authority to issue a standby;
b. formal requirements
for execution of a standby (e.g. a signed writing); or
c. defenses to
honour based on fraud, abuse, or similar matters.
These matters are left
to applicable law.
1.06 Nature of Standbys
a. A standby is an irrevocable, independent, documentary, and binding
undertaking when issued and need not so state.
b. Because a standby is
irrevocable, an issuer"s obligations under a standby cannot be amended or
cancelled by the issuer except as provided in the standby or as consented to by
the person against whom the amendment or cancellation is asserted.
Because a standby is independent, the enforceability of an issuer"s obligations
under a standby does not depend on:
i. the issuer"s right or ability to
obtain reimbursement from the applicant;
ii. the beneficiary"s right to
obtain payment from the applicant;
iii. a reference in the standby to
any reimbursement agreement or underlying transaction; or
issuer"s knowledge of performance or breach of any reimbursement agreement or
d. Because a standby is documentary, an issuer"s
obligations depend on the presentation of documents and an examination of
required documents on their face.
e. Because a standby or amendment is
binding when issued, it is enforceable against an issuer whether or not the
applicant authorised its issuance, the issuer received a fee, or the beneficiary
received or relied on the standby or the amendment.
1.07 Independence of
the Issuer-Beneficiary Relationship
An issuer"s obligations toward the
beneficiary are not affected by the issuer"s rights and obligations toward the
applicant under any applicable agreement, practice, or law.
1.08 Limits to
An issuer is not responsible for:
performance or breach of any underlying transaction;
genuineness, or effect of any document presented under the standby;
action or omission of others even if the other person is chosen by the issuer or
nominated person; or
d. observance of law or practice other than that
chosen in the standby or applicable at the place of issuance.
1.09 Defined Terms
In addition to the meanings given
in standard banking practice and applicable law, the following terms have or
include the meanings indicated below:
is a person who applies for issuance of a standby or for whose account it is
issued, and includes
(i) a person applying in its own name but for the
account of another person or
(ii) an issuer acting for its own
"Beneficiary" is a named person who is entitled to draw under a
standby. See Rule 1.11(c)(ii).
"Business Day" means a day on which the
place of business at which the relevant act is to be performed is regularly
open; and "Banking Day" means a day on which the relevant bank is regularly open
at the place at which the relevant act is to be performed.
is a person who, upon an issuer"s nomination to do so, adds to the issuer"s
undertaking its own undertaking to honour a standby. See Rule 1.11(c)(i).
"Demand" means, depending on the context, either a request to honour a standby
or a document that makes such request.
"Document" means a draft, demand,
document of title, investment security, invoice, certificate of default, or any
other representation of fact, law, right, or opinion, that upon presentation
(whether in a paper or electronic medium), is capable of being examined for
compliance with the terms and conditions of a standby.
depending on the context, either a demand presented or a demand honoured.
"Expiration Date" means the latest day for a complying presentation provided in
"Person" includes a natural person, partnership, corporation,
limited liability company, government agency, bank, trustee, and any other legal
or commercial association or entity.
"Presentation" means, depending on
the context, either the act of delivering documents for examination under a
standby or the documents so delivered.
"Presenter" is a person who makes
a presentation as or on behalf of a beneficiary or nominated person.
"Signature" includes any symbol executed or adopted by a person with a present
intent to authenticate a document.
b. Cross References
"Amendment" - Rule 2.06
"Advice" - Rule 2.05
("About" or "Circa") - Rule 3.08(f)
"Assignment of Proceeds" - Rule
"Automatic Amendment" - Rule 2.06(a)
"Cover Instructions" - Rule 5.08
"Honour" - Rule 2.01
"Issuer" - Rule 2.01
"Multiple Presentations" - Rule 3.08(b)
"Nominated Person" - Rule 2.04
"Non-documentary Conditions" - Rule
"Original" - Rule 4.15(b) & (c)
"Partial Drawing" - Rule
"Standby" - Rule 1.01(d)
"Transfer" - Rule 6.01
"Transferee Beneficiary" - Rule 1.11(c)(ii)
"Transfer by Operation of
Law" - Rule 6.11
c. Electronic Presentations
The following terms
in a standby providing for or permitting electronic presentation shall have the
following meanings unless the context otherwise requires:
i. a record (information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is retrievable in
ii. communicated by electronic means to a system for
receiving, storing, re-transmitting, or otherwise processing information (data,
text, images, sounds, codes, computer programs, software, databases, and the
iii. capable of being authenticated and then examined for
compliance with the terms and conditions of the standby.
means to verify an electronic record by generally accepted procedure or
methodology in commercial practice:
i. the identity of a sender or
ii. the integrity of or errors in the transmission of
The criteria for assessing the integrity of
information in an electronic record is whether the information has remained
complete and unaltered, apart from the addition of any endorsement and any
change which arises in the normal course of communication, storage, and
"Electronic signature" means letters, characters, numbers, or
other symbols in electronic form, attached to or logically associated with an
electronic record that are executed or adopted by a party with present intent to
authenticate an electronic record.
"Receipt" occurs when:
electronic record enters in a form capable of being processed by the information
system designated in the standby, or
ii. an issuer retrieves an
electronic record sent to an information system other than that designated by
1.10 Redundant or Otherwise Undesirable Terms
standby should not or need not state that it is:
i. unconditional or
abstract (if it does, it signifies merely that payment under it is conditioned
solely on presentation of specified documents);
ii. absolute (if it
does, it signifies merely that it is irrevocable);
iii. primary (if it
does, it signifies merely that it is the independent obligation of the
iv. payable from the issuer"s own funds (if it does, it
signifies merely that payment under it does not depend on the availability of
applicant funds and is made to satisfy the issuer"s own independent
v. clean or payable on demand (if it does, it signifies
merely that it is payable upon presentation of a written demand or other
documents specified in the standby).
b. A standby should not use the
term "and / or" (if it does it means either or both).
c. The following
terms have no single accepted meaning:
i. and shall be disregarded:
ii. and shall be disregarded
unless their context gives them meaning:
Interpretation of these Rules
a. These Rules are to be interpreted in
the context of applicable standard practice.
b. In these Rules, "standby
letter of credit" refers to the type of independent undertaking for which these
Rules were intended, whereas "standby" refers to an undertaking subjected to
c. Unless the context otherwise requires:
"Issuer" includes a "confirmer" as if the confirmer were a separate issuer and
its confirmation were a separate standby issued for the account of the
ii. "Beneficiary" includes a person to whom the named
beneficiary has effectively transferred drawing rights ("transferee
iii. "Including" means "including but not limited to";
iv. "A or B" means "A or B or both"; "either A or B" means "A or B, but not
both"; and "A and B" means "both A and B";
v. Words in the singular
number include the plural, and in the plural include the singular; and
vi. Words of the neuter gender include any gender.
d. i. Use of the
phrase "unless a standby otherwise states" or the like in a rule emphasizes that
the text of the standby controls over the rule;
ii. Absence of such a
phrase in other rules does not imply that other rules have priority over the
text of the standby;
iii. Addition of the term "expressly" or "clearly"
to the phrase "unless a standby otherwise states" or the like emphasizes that
the rule should be excluded or modified only by wording in the standby that is
specific and unambiguous; and
iv. While the effect of all of these Rules
may be varied by the text of the standby, variations of the effect of some of
these Rules may disqualify the standby as an independent undertaking under
e. The phrase "stated in the standby" or the like refers
to the actual text of a standby (whether as issued or effectively amended)
whereas the phrase "provided in the standby" or the like refers to both the text
of the standby and these Rules as incorporated.
2.01 Undertaking to Honour by Issuer and Any Confirmer to Beneficiary
a. An issuer undertakes to the beneficiary to honour a presentation that appears
on its face to comply with the terms and conditions of the standby in accordance
with these Rules supplemented by standard standby practice.
b. An issuer
honours a complying presentation made to it by paying the amount demanded of it
at sight, unless the standby provides for honour:
i. by acceptance of a
draft drawn by the beneficiary on the issuer, in which case the issuer honours
(a) timely accepting the draft; and
(b) thereafter paying
the holder of the draft on presentation of the accepted draft on or after its
ii. by deferred payment of a demand made by the beneficiary on
the issuer, in which case the issuer honours by:
(a) timely incurring a
deferred payment obligation; and
(b) thereafter paying at maturity.
iii. by negotiation, in which case the issuer honours by paying the amount
demanded at sight without recourse.
c. An issuer acts in a timely manner
if it pays at sight, accepts a draft, or undertakes a deferred payment
obligation (or if it gives notice of dishonour) within the time permitted for
examining the presentation and giving notice of dishonour.
d. i. A
confirmer undertakes to honour a complying presentation made to it by paying the
amount demanded of it at sight or, if the standby so states, by another method
of honour consistent with the issuer"s undertaking.
ii. If the
confirmation permits presentation to the issuer, then the confirmer undertakes
also to honour upon the issuer"s wrongful dishonour by performing as if the
presentation had been made to the confirmer.
iii. If the standby permits
presentation to the confirmer, then the issuer undertakes also to honour upon
the confirmer"s wrongful dishonour by performing as if the presentation had been
made to the issuer.
e. An issuer honours by paying in immediately
available funds in the currency designated in the standby unless the standby
states it is payable by:
i. payment of a monetary unit of account, in
which case the undertaking is to pay in that unit of account; or
delivery of other items of value, in which case the undertaking is to deliver
2.02 Obligation of Different Branches, Agencies, or Other
For the purposes of these Rules, an issuer"s branch, agency, or
other office acting or undertaking to act under a standby in a capacity other
than as issuer is obligated in that capacity only and shall be treated as a
2.03 Conditions to Issuance
A standby is issued
when it leaves an issuer"s control unless it clearly specifies that it is not
then "issued" or "enforceable". Statements that a standby is not "available",
"operative", "effective", or the like do not affect its irrevocable and binding
nature at the time it leaves the issuer"s control.
A standby may nominate a person to advise, receive a presentation, effect a
transfer, confirm, pay, negotiate, incur a deferred payment obligation, or
accept a draft.
b. Nomination does not obligate the nominated person to
act except to the extent that the nominated person undertakes to act.
A nominated person is not authorised to bind the person making the
2.05 Advice of Standby or Amendment
a. Unless an advice
states otherwise, it signifies that:
i. the advisor has checked the
apparent authenticity of the advised message in accordance with standard letter
of credit practice; and
ii. the advice accurately reflects what has been
b. A person who is requested to advise a standby and decides
not to do so should notify the requesting party.
2.06 When an Amendment is
Authorised and Binding
a. If a standby expressly states that it is
subject to "automatic amendment" by an increase or decrease in the amount
available, an extension of the expiration date, or the like, the amendment is
effective automatically without any further notification or consent beyond that
expressly provided for in the standby. (Such an amendment may also be referred
to as becoming effective "without amendment".)
b. If there is no
provision for automatic amendment, an amendment binds:
i. the issuer
when it leaves the issuer"s control; and
ii. the confirmer when it
leaves the confirmer"s control, unless the confirmer indicates that it does not
confirm the amendment.
c. If there is no provision for automatic
i. the beneficiary must consent to the amendment for it to be
ii. the beneficiary"s consent must be made by an express
communication to the person advising the amendment unless the beneficiary
presents documents which comply with the standby as amended and which would not
comply with the standby prior to such amendment; and
iii. an amendment
does not require the applicant"s consent to be binding on the issuer, the
confirmer, or the beneficiary.
d. Consent to only part of an amendment
is a rejection of the entire amendment.
2.07 Routing of Amendments
a. An issuer using another person to advise a standby must advise all amendments
to that person.
b. An amendment or cancellation of a standby does not
affect the issuer"s obligation to a nominated person that has acted within the
scope of its nomination before receipt of notice of the amendment or
c. Non-extension of an automatically extendable
(renewable) standby does not affect an issuer"s obligation to a nominated person
who has acted within the scope of its nomination before receipt of a notice of
3.01 Complying Presentation
under a Standby
A standby should indicate the time, place and location
within that place, person to whom, and medium in which presentation should be
made. If so, presentation must be so made in order to comply. To the extent that
a standby does not so indicate, presentation must be made in accordance with
these Rules in order to be complying.
3.02 What Constitutes a
The receipt of a document required by and presented under a
standby constitutes a presentation requiring examination for compliance with the
terms and conditions of the standby even if not all of the required documents
have been presented.
3.03 Identification of Standby
presentation must identify the standby under which the presentation is made.
b. A presentation may identify the standby by stating the complete
reference number of the standby and the name and location of the issuer or by
attaching the original or a copy of the standby.
c. If the issuer cannot
determine from the face of a document received that it should be processed under
a standby or cannot identify the standby to which it relates, presentation is
deemed to have been made on the date of identification.
3.04 Where and to
Whom Complying Presentation Made
a. To comply, a presentation must be
made at the place and any location at that place indicated in the standby or
provided in these Rules.
b. If no place of presentation to the issuer is
indicated in the standby, presentation to the issuer must be made at the place
of business from which the standby was issued.
c. If a standby is
confirmed, but no place for presentation is indicated in the confirmation,
presentation for the purpose of obligating the confirmer (and the issuer) must
be made at the place of business of the confirmer from which the confirmation
was issued or to the issuer.
d. If no location at a place of
presentation is indicated (such as department, floor, room, station, mail stop,
post office box, or other location), presentation may be made to:
general postal address indicated in the standby;
ii. any location at the
place designated to receive deliveries of mail or documents; or
person at the place of presentation actually or apparently authorised to receive
3.05 When Timely Presentation Made
a. A presentation is
timely if made at any time after issuance and before expiry on the expiration
b. A presentation made after the dose of business at the place of
presentation is deemed to have been made on the next business day.
Complying Medium of Presentation
a. To comply, a document must be
presented in the medium indicated in the standby.
b. Where no medium is
indicated, to comply a document must be presented as a paper document, unless
only a demand is required, in which case:
i. a demand that is presented
via S.W.I.F.T., tested telex, or other similar authenticated means by a
beneficiary that is a S.W.I.F.T. participant or a bank complies; otherwise
ii. a demand that is not presented as a paper document does not comply unless
the issuer permits, in its sole discretion, the use of that medium.
document is not presented as a paper document if it is communicated by
electronic means even if the issuer or nominated person receiving it generates a
paper document from it.
d. Where presentation in an electronic medium is
indicated, to comply a document must be presented as an electronic record
capable of being authenticated by the issuer or nominated person to whom it is
3.07 Separateness of Each Presentation
a. Making a
non-complying presentation, withdrawing a presentation, or failing to make any
one of a number of scheduled or permitted presentations does not waive or
otherwise prejudice the right to make another timely presentation or a timely
re-presentation whether or not the standby prohibits partial or multiple
drawings or presentations.
b. Wrongful dishonour of a complying
presentation does not constitute dishonour of any other presentation under a
standby or repudiation of the standby.
c. Honour of a non-complying
presentation, with or without notice of its non-compliance, does not waive
requirements of a standby for other presentations.
3.08 Partial Drawing and
Multiple Presentations; Amount of Drawings
a. A presentation may be made
for less than the full amount available ("partial drawing").
than one presentation ("multiple presentations") may be made.
statement "partial drawings prohibited" or a similar expression means that a
presentation must be for the full amount available.
d. The statement
"multiple drawings prohibited" or a similar expression means that only one
presentation may be made and honoured but that it may be for less than the full
e. If a demand exceeds the amount available under the
standby, the drawing is discrepant. Any document other than the demand stating
an amount in excess of the amount demanded is not discrepant for that reason.
f. Use of "approximately", "about", "circa", or a similar word permits a
tolerance not to exceed 10% more or 10% less of the amount to which such word
3.09 Extend or Pay
A beneficiary"s request to extend the
expiration date of the standby or, alternatively, to pay the amount available
a. is a presentation demanding payment under the standby, to
be examined as such in accordance with these Rules; and
b. implies that
i. consents to the amendment to extend the expiry date
to the date requested;
ii. requests the issuer to exercise its
discretion to seek the approval of the applicant and to issue that amendment;
iii. upon issuance of that amendment, retracts its demand for payment;
iv. consents to the maximum time available under these Rules for
examination and notice of dishonour.
3.10 No Notice of Receipt of
An issuer is not required to notify the applicant of
receipt of a presentation under the standby.
3.11 Issuer Waiver and
Applicant Consent to Waiver of Presentation Rules
In addition to other
discretionary provisions in a standby or these Rules, an issuer may, in its sole
discretion, without notice to or consent of the applicant arid without effect on
the applicant"s obligations to the issuer, waive
a. the following Rules
and any similar terms stated in the standby which are primarily for the issuer"s
benefit or operational convenience:
i. treatment of documents received,
at the request of the presenter, as having been presented at a later date (Rule
ii. identification of a presentation to the standby under which
it is presented (Rule 3.03(a);
iii. where and to whom presentation is
made (Rule 3.04(b), (c), and (d)), except the country of presentation stated in
the standby; or
iv. treatment of a presentation made after the close of
business as if it were made on the next business day (Rule 3.05(b)).
the following Rule but not similar terms stated in the standby:
required document dated after the date of its stated presentation (Rule 4.06);
ii. the requirement that a document issued by the beneficiary be in
the language of the standby (Rule 4.04).
c. the following Rule relating
to the operational integrity of the standby only in so far as the bank is in
fact dealing with the true beneficiary:
acceptance of a demand in an
electronic medium (Rule 3.06(b)).
Waiver by the confirmer requires the
consent of the issuer with respect to paragraphs (b) and (c) of this Rule.
3.12 Original Standby Lost, Stolen, Mutilated, or Destroyed
a. If an
original standby is lost, stolen, mutilated, or destroyed, the issuer need not
replace it or waive any requirement that the original be presented under the
b. If the issuer agrees to replace an original standby or to
waive a requirement for its presentation, it may provide a replacement or copy
to the beneficiary without affecting the applicant"s obligations to the issuer
to reimburse, but, if it does so, the issuer must mark the replacement or copy
as such. The issuer may, in its sole discretion, require indemnities
satisfactory to it from the beneficiary and assurances from nominated persons
that no payment has been made.
Closure on expiry date
Date on a Non-Business Day
a. If the last day for presentation stated in
a standby (whether stated to be the expiration date or the date by which
documents must be received) is not a business day of the issuer or nominated
person where presentation is to be made, then presentation made there on the
first following business day shall be deemed timely.
b. A nominated
person to whom such a presentation is made must so notify the issuer.
Closure on a Business Day and Authorization of Another Reasonable Place for
a. If on the last business day for presentation the place
for presentation stated in a standby is for any reason closed and presentation
is not timely made because of the closure, then the last day for presentation is
automatically extended to the day occurring thirty calendar days after the place
for presentation re-opens for business, unless the standby otherwise
b. Upon or in anticipation of closure of the place of
presentation, an issuer may authorise another reasonable place for presentation
in the standby or in a communication received by the beneficiary. If it does so,
i. presentation must be made at that reasonable place; and
ii. if the communication is received fewer than thirty calendar days before the
last day for presentation and for that reason presentation is not timely made,
the last day for presentation is automatically extended to the day occurring
thirty calendar days after the last day for presentation.
4.01 Examination for Compliance
a. Demands for honour
of a standby must comply with the terms and conditions of the standby.
b. Whether a presentation appears to comply is determined by examining the
presentation on its face against the terms and conditions stated in the standby
as interpreted and supplemented by these Rules which are to be read in the
context of standard standby practice.
4.02 Non-Examination of Extraneous
Documents presented which are not required by the standby need
not be examined and, in any event, shall be disregarded for purposes of
determining compliance of the presentation. They may without responsibility be
returned to the presenter or passed on with the other documents presented.
4.03 Examination for Inconsistency
An issuer or nominated person is
required to examine documents for inconsistency with each other only to the
extent provided in the standby.
4.04 Language of Documents
language of all documents issued by the beneficiary is to be that of the
4.05 Issuer of Documents
Any required document must be
issued by the beneficiary unless the standby indicates that the document is to
be issued by a third person or the document is of a type that standard standby
practice requires to be issued by a third person.
4.06 Date of Documents
The issuance date of a required document may be earlier but not later than
the date of its presentation.
4.07 Required Signature on a Document
a. A required document need not be signed unless the standby indicates that the
document must be signed or the document is of a type that standard standby
practice requires be signed.
b. A required signature may be made in any
manner that corresponds to the medium in which the signed document is
c. Unless a standby specifies:
i. the name of a
person who must sign a document, any signature or authentication will be
regarded as a complying signature.
ii. the status of a person who must
sign, no indication of status is necessary.
d. If a standby specifies
that a signature must be made by:
i. a named natural person without
requiring that the signer"s status be identified, a signature complies that
appears to be that of the named person;
ii. a named legal person or
government agency without identifying who is to sign on its behalf or its
status, any signature complies that appears to have been made on behalf of the
named legal person or government agency; or
iii. a named natural person,
legal person, or government agency requiring the status of the signer be
indicated, a signature complies which appears to be that of the named natural
person, legal person, or government agency and indicates its status.
Demand Document Implied
If a standby does not specify any required
document, it will still be deemed to require a documentary demand for
4.09 Identical Wording and Quotation Marks
If a standby
a. a statement without specifying precise wording, then the
wording in the document presented must appear to convey the same meaning as that
required by the standby;
b. specified wording by the use of quotation
marks, blocked wording, or an attached exhibit or form, then typographical
errors in spelling, punctuation, spacing, or the like that are apparent when
read in context are not required to be duplicated and blank lines or spaces for
data may be completed in any manner not inconsistent with the standby; or
c. specified wording by the use of quotation marks, blocked wording, or an
attached exhibit or form, and also provides that the specified wording be
"exact" or "identical", then the wording in the documents presented must
duplicate the specified wording, including typographical errors in spelling,
punctuation, spacing and the like, as well as blank lines and spaces for data
must be exactly reproduced.
4.10 Applicant Approval
should not specify that a required document be issued, signed, or counter-signed
by the applicant. However, if the standby includes such a requirement, the
issuer may not waive the requirement and is not responsible for the applicant"s
withholding of the document or signature.
4.11 Non-Documentary Terms or
a. A standby term or condition which is non-documentary must
be disregarded whether or not it affects the issuer"s obligation to treat a
presentation as complying or to treat the standby as issued, amended, or
b. Terms or conditions are non-documentary if the standby
does not require presentation of a document in which they are to be evidenced
and if their fulfillment cannot be determined by the issuer from the issuer"s
own records or within the issuer"s normal operations.
from the issuer"s own records or within the issuer"s normal operations include
i. when, where, and how documents are presented or
otherwise delivered to the issuer;
ii. when, where, and how
communications affecting the standby are sent or received by the issuer,
beneficiary, or any nominated person;
iii. amounts transferred into or
out of accounts with the issuer; and
iv. amounts determinable from a
published index (e.g., if a standby provides for determining amounts of interest
accruing according to published interest rates).
d. An issuer need not
re-compute a beneficiary"s computations under a formula stated or referenced in
a standby except to the extent that the standby so provides.
of Statements in Documents
a. A required statement need not be
accompanied by a solemnity, officialization, or any other formality.
If a standby provides for the addition of a formality to a required statement by
the person making it without specifying form or content, the statement complies
if it indicates that it was declared, averred, warranted, attested, sworn under
oath, affirmed, certified, or the like.
c. If a standby provides for a
statement to be witnessed by another person without specifying form or content,
the witnessed statement complies if it appears to contain a signature of a
person other than the beneficiary with an indication that the person is acting
as a witness.
d. If a standby provides for a statement to be
countersigned, legalized, visaed, or the like by a person other than the
beneficiary acting in a governmental, judicial, corporate, or other
representative capacity without specifying form or content, the statement
complies if it contains the signature of a person other than the beneficiary and
includes an indication of that person"s representative capacity and the
organization on whose behalf the person has acted.
4.13 No Responsibility
to Identify Beneficiary
Except to the extent that a standby requires
presentation of an electronic record:
a. a person honouring a
presentation has no obligation to the applicant to ascertain the identity of any
person making a presentation or any assignee of proceeds;
b. payment to
a named beneficiary, transferee, an acknowledged assignee, successor by
operation of law, to an account or account number stated in the standby or in a
cover instruction from the beneficiary or nominated person fulfills the
obligation under the standby to effect payment.
4.14 Name of Acquired or
Merged Issuer or Confimer
If the issuer or confirmer is reorganized,
merged, or changes its name, any required reference by name to the issuer or
confirmer in the documents presented may be to it or its successor.
Original, Copy, and Multiple Documents
a. A presented document must be
b. Presentation of an electronic record, where an
electronic presentation is permitted or required, is deemed to be an
c. i. A presented document is deemed to be an original
unless it appears on its face to have been reproduced from an original.
ii. A document which appears to have been reproduced from an original is deemed
to be an original if the signature or authentication appears to be original.
d. A standby that requires presentation of a "copy" permits presentation of
either an original or copy unless the standby states that only a copy be
presented or otherwise addresses the disposition of all originals.
multiples of the same document are requested, only one must be an original
i. "duplicate originals" or "multiple originals" are requested
in which case all must be originals; or
ii. "two copies", "two-fold", or
the like are requested in which case either originals or copies may be
Standby document types
4.16 Demand for Payment
demand for payment need not be separate from the beneficiary"s statement or
other required document.
b. If a separate demand is required, it must
i. a demand for payment from the beneficiary directed to the
issuer or nominated person;
ii. a date indicating when the demand was
iii. the amount demanded; and
iv. the beneficiary"s
c. A demand may be in the form of a draft or other
instruction, order, or request to pay. If a standby requires presentation of a
"draft" or "bill of exchange", that draft or bill of exchange need not be in
negotiable form unless the standby so states.
4.17 Statement of Default or
Other Drawing Event
If a standby requires a statement, certificate, or
other recital of a default or other drawing event and does not specify content,
the document complies if it contains:
a. a representation to the effect
that payment is due because a drawing event described in the standby has
b. a date indicating when it was issued; and
4.18 Negotiable Documents
If a standby
requires presentation of a document that is transferable by endorsement and
delivery without stating whether, how, or to whom endorsement must be made, then
the document may be presented without endorsement, or, if endorsed, the
endorsement may be in blank and, in any event, the document may be issued or
negotiated with or without recourse.
4.19 Legal or Judicial Documents
If a standby requires presentation of a government-issued document, a court
order, an arbitration award, or the like, a document or a copy is deemed to
comply if it appears to be:
i. issued by a government agency, court,
tribunal, or the like;
ii. suitably titled or named;
iv. dated; and
v. originally certified or authenticated
by an official of a government agency, court, tribunal, or the like.
a. If a standby requires a document other than one whose
content is specified in these Rules without specifying the issuer, data content,
or wording, a document complies if it appears to be appropriately titled or to
serve the function of that type of document under standard standby practice.
b. A document presented under a standby is to be examined in the context of
standby practice under these Rules even if the document is of a type (such as a
commercial invoice, transport documents, insurance documents or the like) for
which the Uniform Customs and Practice for Documentary Credits contains detailed
4.21 Request to Issue Separate Undertaking
If a standby
requests that the beneficiary of the standby issue its own separate undertaking
to another (whether or not the standby recites the text of that undertaking):
a. the beneficiary receives no rights other than its rights to draw under
the standby even if the issuer pays a fee to the beneficiary for issuing the
b. neither the separate undertaking nor any
documents presented under it need be presented to the issuer; and
originals or copies of the separate undertaking or documents presented under it
are received by the issuer although not required to be presented as a condition
to honour of the standby:
i. the issuer need not examine, and, in any
event, shall disregard their compliance or consistency with the standby, with
the beneficiary"s demand under the standby, or with the beneficiary"s separate
ii. the issuer may without responsibility return them
to the presenter or forward them to the applicant with the presentation.
NOTICE, PRECLUSION, AND DISPOSITION OF DOCUMENTS
Notice of Dishonour
a. Notice of dishonour must be given within a time
after presentation of documents which is not unreasonable.
given within three business days is deemed to be not unreasonable and beyond
seven business days is deemed to be unreasonable.
ii. Whether the time
within which notice is given is unreasonable does not depend upon an imminent
deadline for presentation.
iii. The time for calculating when notice of
dishonour must be given begins on the business day following the business day of
iv. Unless a standby otherwise expressly states a
shortened time within which notice of dishonour must be given, the issuer has no
obligation to accelerate its examination of a presentation.
b. i. The
means by which a notice of dishonour is to be given is by telecommunication, if
available, and, if not, by another available means which allows for prompt
ii. If notice of dishonour is received within the time permitted
for giving the notice, then it is deemed to have been given by prompt means.
c. Notice of dishonour must be given to the person from whom the documents
were received (whether the beneficiary, nominated person, or person other than a
delivery person) except as otherwise requested by the presenter.
Statement of Grounds for Dishonour
A notice of dishonour shall state all
discrepancies upon which dishonour is based.
5.03 Failure to Give Timely
Notice of Dishonour
a. Failure to give notice of a discrepancy in a
notice of dishonour within the time and by the means specified in the standby or
these rules precludes assertion of that discrepancy in any document containing
the discrepancy that is retained or re-presented, but does not preclude
assertion of that discrepancy in any different presentation under the same or a
b. Failure to give notice of dishonour or acceptance
or acknowledgment that a deferred payment undertaking has been incurred
obligates the issuer to pay at maturity.
5.04 Notice of Expiry
Failure to give notice that a presentation was made after the expiration date
does not preclude dishonour for that reason.
5.05 Issuer Request for
Applicant Waiver without Request by Presenter
If the issuer decides that
a presentation does not comply and if the presenter does not otherwise instruct,
the issuer may, in its sole discretion, request the applicant to waive
non-compliance or otherwise to authorise honour within the time available for
giving notice of dishonour but without extending it. Obtaining the applicant"s
waiver does not obligate the issuer to waive non-compliance.
Request for Applicant Waiver upon Request of Presenter
If, after receipt
of notice of dishonour, a presenter requests that the presented documents be
forwarded to the issuer or that the issuer seek the applicant"s waiver:
a. no person is obligated to forward the discrepant documents or seek the
b. the presentation to the issuer remains subject to
these Rules unless departure from them is expressly consented to by the
c. if the documents are forwarded or if a waiver is
i. the presenter is precluded from objecting to the
discrepancies notified to it by the issuer;
ii. the issuer is not
relieved from examining the presentation under these Rules;
issuer is not obligated to waive the discrepancy even if the applicant waives
iv. the issuer must hold the documents until it receives a
response from the applicant or is requested by the presenter to return the
documents, and if the issuer receives no such response or request within ten
business days of its notice of dishonour, it may return the documents to the
5.07 Disposition of Documents
Dishonoured documents must
be returned, held, or disposed of as reasonably instructed by the presenter.
Failure to give notice of the disposition of documents in the notice of
dishonour does not preclude the issuer from asserting any defense otherwise
available to it against honour.
5.08 Cover Instructions / Transmittal
a. Instructions accompanying a presentation made under a standby
may be relied on to the extent that they are not contrary to the terms or
conditions of the standby, the demand, or these Rules.
Representations made by a nominated person accompanying a presentation may be
relied upon to the extent that they are not contrary to the terms or conditions
of a standby or these Rules.
c. Notwithstanding receipt of instructions,
an issuer or nominated person may pay, give notice, return the documents, or
otherwise deal directly with the presenter.
d. A statement in the cover
letter that the documents are discrepant does not relieve the issuer from
examining the presentation for compliance.
5.09 Applicant Notice of
a. An applicant must timely object to an issuer"s honour of a
noncomplying presentation by giving timely notice by prompt means.
applicant acts timely if it objects to discrepancies by sending a notice to the
issuer stating the discrepancies on which the objection is based within a time
after the applicant"s receipt of the documents which is not unreasonable.
c. Failure to give a timely notice of objection by prompt means precludes
assertion by the applicant against the issuer of any discrepancy or other matter
apparent on the face of the documents received by the applicant, but does not
preclude assertion of that objection to any different presentation under the
same or a different standby.
TRANSFER, ASSIGNMENT, AND TRANSFER
BY OPERATION OF LAW
Transfer of Drawing Rights
6.01 Request to
Transfer Drawing Rights
Where a beneficiary requests that an issuer or
nominated person honour a drawing from another person as if that person were the
beneficiary, theses Rules on transfer of drawing rights ("transfer") apply.
6.02 When Drawing Rights are Transferable
a. A standby is not
transferable unless it so states.
b. A standby that states that it is
transferable without further provision means that drawing rights:
be transferred in their entirety more than once;
ii. may not be
partially transferred; and
iii. may not be transferred unless the issuer
(including the confirmer) or another person specifically nominated in the
standby agrees to and effects the transfer requested by the beneficiary.
6.03 Conditions to Transfer
An issuer of a transferable standby or a
nominated person need not effect a transfer unless:
a. it is satisfied
as to the existence and authenticity of the original standby; and
beneficiary submits or fulfills:
i. a request in a form acceptable to
the issuer or nominated person including the effective date of the transfer and
the name and address of the transferee;
ii. the original standby;
iii. verification of the signature of the person signing for the
iv. verification of the authority of the person signing for
v. payment of the transfer fee; and
other reasonable requirements.
6.04 Effect of Transfer on Required
Where there has been a transfer of drawing rights in their
a. a draft or demand must be signed by the transferee
b. the name of the transferee beneficiary may be used
in place of the name of the transferor beneficiary in any other required
6.05 Reimbursement for Payment Based on a Transfer
issuer or nominated person paying under a transfer pursuant to Rule 6.03(a),
(b)(i), and (b)(ii) is entitled to reimbursement as if it had made payment to
Acknowledgment of Assignment of Proceeds
Assignment of Proceeds
Where an issuer or nominated person is asked to
acknowledge a beneficiary"s request to pay an assignee all or part of any
proceeds of the beneficiary"s drawing under the standby, these Rules on
acknowledgment of an assignment of proceeds apply except where applicable law
6.07 Request for Acknowledgment
applicable law otherwise requires, an issuer or nominated person
not obligated to give effect to an assignment of proceeds which it has not
ii. is not obligated to acknowledge the assignment.
b. If an assignment is acknowledged:
i. the acknowledgment confers
no rights with respect to the standby to the assignee who is only entitled to
the proceeds assigned, if any, and whose rights may be affected by amendment or
ii. the rights of the assignee are subject to:
(a) the existence of any net proceeds payable to the beneficiary by the person
making the acknowledgment;
(b) rights of nominated persons and
(c) rights of other acknowledged assignees;
(d) any other rights or interests that may have priority under
6.08 Conditions to Acknowledgment of Assignment of
An issuer or nominated person may condition its acknowledgment
on receipt of:
a. the original standby for examination or notation;
b. verification of the signature of the person signing for the
c. verification of the authority of the person signing for
d. an irrevocable request signed by the beneficiary for
acknowledgment of the assignment that includes statements, covenants,
indemnities, and other provisions which may be contained in the issuer"s or
nominated person"s required form requesting acknowledgment of assignment, such
i. the identity of the affected drawings if the standby permits
ii. the full name, legal form, location, and mailing
address of the beneficiary and the assignee;
iii. details of any request
affecting the method of payment or delivery of the standby proceeds;
limitation on partial assignments and prohibition of successive assignments;
v. statements regarding the legality and relative priority of the
vi. right of recovery by the issuer or nominated person
of any proceeds received by the assignee that are recoverable from the
e. payment of a fee for the acknowledgment; and
fulfillment of other reasonable requirements.
6.09 Conflicting Claims to
If there are conflicting claims to proceeds, then payment to an
acknowledged assignee may be suspended pending resolution of the conflict.
6.10 Reimbursement for Payment Based on an Assignment
An issuer or
nominated person paying under an acknowledged assignment pursuant to Rule
6.08(a) and (b) is entitled to reimbursement as if it had made payment to the
beneficiary. If the beneficiary is a bank, the acknowledgment may be based
solely upon an authenticated communication.
Transfer by operation of law
6.11 Transferee by Operation of Law
Where an heir, personal
representative, liquidator, trustee, receiver, successor corporation, or similar
person who claims to be designated by law to succeed to the interests of a
beneficiary presents documents in its own name as if it were the authorised
transferee of the beneficiary, these Rules on transfer by operation of law
6.12 Additional Document in Event of Drawing in Successor"s Name
A claimed successor may be treated as if it were an authorised transferee
of a beneficiary"s drawing rights in their entirety if it presents an additional
document or documents which appear to be issued by a public official or
representative (including a judicial officer) and indicate:
a. that the
claimed successor is the survivor of a merger, consolidation, or similar action
of a corporation, limited liability company, or other similar organization;
b. that the claimed successor is authorised or appointed to act on behalf
of the named beneficiary or its estate because of an insolvency proceeding;
c. that the claimed successor is authorised or appointed to act on behalf
of the named beneficiary because of death or incapacity; or
d. that the
name of the named beneficiary has been changed to that of the claimed
6.13 Suspension of Obligations upon Presentation by Successor
An issuer or nominated person which receives a presentation from a claimed
successor which complies in all respects except for the name of the
a. may request in a manner satisfactory as to form and
i. a legal opinion;
ii. an additional document
referred to in Rule 6.12 (Additional Document in Event of Drawing in Successor"s
Name) from a public official;
iii. statements, covenants, and
indemnities regarding the status of the claimed successor as successor by
operation of law;
iv. payment of fees reasonably related to these
v. anything which may be required for a transfer
under Rule 6.03 (Conditions to Transfer) or an acknowledgment of assignment of
proceeds under Rule 6.08 (Conditions to Acknowledgment of Assignment of
but such documentation shall not constitute a required
document for purposes of expiry of the standby.
b. Until the issuer or
nominated person receives the requested documentation, its obligation to honour
or give notice of dishonour is suspended, but any deadline for presentation of
required documents is not thereby extended.
6.14 Reimbursement for Payment
Based on a Transfer by Operation of Law
An issuer or nominated person
paying under a transfer by operation of law pursuant to Rule 6.12 (Additional
Document in Event of Drawing in Successor"s Name) is entitled to reimbursement
as if it had made payment to the beneficiary.
7.01 When an Irrevocable Standby is Cancelled or Terminated
beneficiary"s rights under a standby may not be cancelled without its consent.
Consent may be evidenced in writing or by an action such as return of the
original standby in a manner which implies that the beneficiary consents to
cancellation. A beneficiary"s consent to cancellation is irrevocable when
communicated to the issuer.
7.02 Issuer"s Discretion Regarding a Decision
Before acceding to a beneficiary"s authorization to cancel and
treating the standby as cancelled for all purposes, an issuer may require in a
manner satisfactory as to form and substance:
a. the original
b. verification of the signature of the person signing for the
c. verification of the authorization of the person signing
for the beneficiary;
d. a legal opinion;
e. an irrevocable
authority signed by the beneficiary for cancellation that includes statements,
covenants, indemnities, and similar provisions contained in a required form;
f. satisfaction that the obligation of any confirmer has been cancelled;
g. satisfaction that there has not been a transfer or payment by any
nominated person; and
h. any other reasonable measure.
8.01 Right to Reimbursement
payment is made against a complying presentation in accordance with these Rules,
reimbursement must be made by:
i. an applicant to an issuer requested to
issue a standby; and
ii. an issuer to a person nominated to honour or
otherwise give value.
b. An applicant must indemnify the issuer against
all claims, obligations, and responsibilities (including attorney"s fees)
arising out of:
i. the imposition of law or practice other than that
chosen in the standby or applicable at the place of issuance;
fraud, forgery, or illegal action of others; or
iii. the issuer"s
performance of the obligations of a confirmer that wrongfully dishonours a
c. This Rule supplements any applicable agreement, course
of dealing, practice, custom or usage providing for reimbursement or
indemnification on lesser or other grounds.
8.02 Charges for Fees and
a. An applicant must pay the issuer"s charges and reimburse the
issuer for any charges that the issuer is obligated to pay to persons nominated
with the applicant"s consent to advise, confirm, honour, negotiate, transfer, or
to issue a separate undertaking.
b. An issuer is obligated to pay the
charges of other persons:
i. if they are payable in accordance with the
terms of the standby; or
ii. if they are the reasonable and customary
fees and expenses of a person requested by the issuer to advise, honour,
negotiate, transfer, or to issue a separate undertaking, and they are
unrecovered and unrecoverable from the beneficiary or other presenter because no
demand is made under the standby.
8.03 Refund of Reimbursement
nominated person that obtains reimbursement before the issuer timely dishonours
the presentation must refund the reimbursement with interest if the issuer
dishonours. The refund does not preclude the nominated person"s wrongful
8.04 Bank-to-Bank Reimbursement
or authorization to obtain reimbursement from another bank is subject to the
International Chamber of Commerce standard rules for bank-to-bank
9.01 Duration of Standby
a. contain an expiry date; or
b. permit the issuer
to terminate the standby upon reasonable prior notice or payment.
Effect of Expiration on Nominated Person
The rights of a nominated
person that acts within the scope of its nomination are not affected by the
subsequent expiry of the standby.
9.03 Calculation of Time
period of time within which an action must be taken under these Rules begins to
run on the first business day following the business day when the action could
have been undertaken at the place where the action should have been
b. An extension period starts on the calendar day following
the stated expiry date even if either day falls on a day when the issuer is
9.04 Time of Day of Expiration
If no time of day is stated
for expiration, it occurs at the close of business at the place of
9.05 Retention of Standby
Retention of the original
standby does not preserve any rights under the standby after the right to demand
SYNDICATION / PARTICIPATION
If a standby with more than one issuer does not state to
whom presentation may be made, presentation may be made to any issuer with
binding effect on all issuers.
otherwise agreed between an applicant and an issuer, the issuer may sell
participations in the issuer"s rights against the applicant and any presenter
and may disclose relevant applicant information in confidence to potential
b. An issuer"s sale of participations does not affect the
obligations of the issuer under the standby or create any rights or obligations
between the beneficiary and any participant.