At Trade Finance Global, we’re regularly asked what wording to follow in a trade finance transaction. Such guidance can be found in the UCP 600, which is the Uniform Customs and Practice for Documentary Credits (UCP), a set of rules on the issuance and the usage of letters of credit (LCs).
There is a note in ISBP 745 paragraph ii which reads:
“The practices described in this publication highlight how the articles of UCP 600 are to be interpreted and applied, to the extent that the terms and conditions of the credit, or any amendment thereto, do not expressly modify or exclude an applicable article in UCP 600.”
In short this makes clear that if a Letter of Credit provides different wording or a definition, then it is the wording in the LC that applies.
