ICC Digital Library Forum

After the SWIFT upgrade, most credits inserted "UCP latest version" in field 40E.
.
On or after July 1, 2007, which UCP (500 or 600) should be applied for those credits that issued prior to that time?

Regards,
Albert

ucp 500

For LC issued prior to July 1, 2007, no matter when subsuquent amendment being issued, it should also be subjected to UCP500. it would create chaos if we stated in the amendment that the LC now subject to UCP600.

I believe that applicable SWIFT standards answer the question by stating that "latest version" means the version in effect on date of issuance. That should bind SWIFT member banks. The concern is that non-members may be actually confused or able to exploit the confusion. Consider how a transferee beneficiary might read an advice of transfer sent after 600 becomes effective on an LC issued when 500 was in effect. Regards, Jim Barnes

Jim,

Thank you!

That was part of my concern.

Regards,
Albert

Would it be advisable always to select for Field 40E 'OTHER/UCP500'
or 'OTHER/UCP600' so as to oblige the specialist to take extra care on the rules? Defaulting it as 'LATEST VERSION' may pose a problem.

I think that using the solution "otherUCP500" would probably be quite a good one as we approach the cut off date, since a credit might be received by the first bank before july 1st but forwarded to a second advising bank or a transferring bank after the cutoff. However, once the date will have been passed for a couple of weeks, there would be no confusion possible, due to the swift definitions

Best regards
Judith

Hi everyone.
I think the UCP in force on the date the l/c has been issued is to be taken into consideration no matter when l/c expires.
Even in case of advising it through a 2nd advising bank, the UCP500 must be applied if l/c's issuing date is prior to July 1st 2007.
For a checker the funny part will come under back to back l/cs.
Happy New Year and best wishes to all.
Bogdan

Back to Back should not be a problem because both credits must be issued subject to the same UCP. You can continue to issue UCP500 credits after 1 July.