URC-522

(Article-1) Application of URR 522

- The Uniform Rules for Collections, 1995 Revision, ICC Publication No 522, might apply to
all accumulations as characterized in ARTICLE 2 where such guidelines are consolidated
into the content of the 'gathering direction' alluded to in ARTICLE 4 and are official on all
gatherings thereto unless generally explicitly concurred or as opposed to the
arrangements of a national, state or neighborhood law and additionally direction which
can't be left from.
- Banks might have no commitment to deal with either an accumulation or any gathering
direction or consequent related directions.
- If a bank chooses, for any reason, not to deal with an accumulation or any related
directions got by it, it must exhort the gathering from whom it got the accumulation or
the directions by media transmission or, if that isn't conceivable, by different speedy
means, immediately.

(Article-2) Collection definition

Collection implies the dealing with bank papers as characterized in relation to

instruction received to receive payment as well as acknowledgment/acceptance
or convey documents against payment as well as against acknowledgment/acceptance.
or convey documents on different terms and conditions. 'Financial Documents' implies
money related documents or financial documents and additionally business
records/commercial documents:
1. bills of exchange, promissory notes, cheque, or other same
instruments utilized for getting the installment of cash.
'Commercial Documents' implies invoices, transport documents, documents of title or
other same papers, or some other records/documents at all, not being financial
documents.
'Clean Collection' implies financial documents not joined by business
reports/commercial documents.
'Narrative accumulation' implies gathering of :
1. Financial documents joined by commercial documents.
2. Commercial documents not joined by financial papers.
(Article-3) Collection parties

Parties are in collection process:

Principal who is the gathering entrusting the handling the collection process to a bank;
remitting bank which is the bank to which the principal or main has depended the
handling of collection.
Collecting bank which is any bank, other than the remitting bank, associated with
preparing the collection;
Presenting bank which is the collecting bank making presentation to the drawee.

Article-4 (Collection Instruction)

All documents dispatched for gathering must be joined by an accumulation guideline

demonstrating that the collection is liable to URC 522 and giving complete and exact
directions. Banks are just allowed to follow up on the directions given in such collection
guideline, and in agreement with these Rules. Banks will not examine documents in
order to obtain instruction.
Collection instruction includes the below informations:
-Bank details from which the collection was received.
-Principal details such as name, postal address, SWIFT Address, Telex, Reference No.
-Drawee details such as-full name, postal address
-Presenting bank details-full name, postal address, Telex, SWIFT, Phone Numbers
-Amount to be collected.
-Document List.
-Terms and conditions of payment or acceptance
-Charges and any interest (if any) to be collected.
-Payment Method
-Instruction in case of non-payment
-Collection instructions must contain the complete address of the drawee.
-it is not collecting bank obligation for any late or delay for any incomplete or incorrect
address being provided.
Article-5 (Presentation)

Presentation is a system in which the presenting bank makes the documents or papers
to the drawee as instructed.
Collection instruction should express the specific timeframe inside which any activity is
to be taken by the drawee. 'First', 'provoke', 'prompt' or any words like this should not
be stated in documents while presentation. Documents are to be present or display to
the drawee in the shape in which they are received. The documents and collection
instruction might be sent straightforwardly by the remitting bank to the collecting bank
 or through another bank as intermediary. If the remitting bank does not choose a
particular presenting bank, the collecting bank may use a showing of its decision.
Article-6 (Sight/Acceptance)
In the case of documents payable at sight the presenting bank must make presentation
for payment without delay. In the case of documents payable at a tenor other than sight
the presenting bank must, where acceptance is called for, make presentation for
acceptance without delay, and where payment is called for, make presentation for
payment not later than the appropriate maturity date.

Article-7 (Release of commercial documents)

Collection procedure may contain or not contain bill of Exchange payable at future time with
guidelines that commercial documents are to be dispatched for payment. If it contains bill of
exchange payable at future date then the commercial documents is delivered to the drawee
against acceptance or payment.

Article-8 (Creation of documents)

Instruction given by remitting bank to drawee or collecting bank to create documents like bill
of exchange, DP Notes that were excluded in the collection process, the format of such
documents should be given by the remitting bank, otherwise the collecting bank is not liable for
such type of documents.

Article-9 (Good Faith and Reasonable Care)

Banks will act in compliance with common decency and exercise sensible care.

Article-10 (Documents Vs. Goods/Services/Performances)

- Goods must be despatched straightforwardly to the address of a bank or as per bank's order.
-Banks have no commitment to make any course of action in regard of the goods to which a
documentary collection relates, including goods storage and insurance even when such definite
instructions are instructed to do so.
-However, for the situation that banks make a action for the goods protection whether
instructed or not.
-Any charges as well as costs acquired by banks regarding any action made to secure the
consignment will be for the record of the gathering from whom they got the collection.
Article-11 (Disclaimer For Acts of an Instructed Party)
Banks using the services of another bank or different banks to give impact to the guidelines of
the primary, do as such for the record and at the danger of such principal.
Banks expect no risk or obligation should the directions they transmit not be carried out,
regardless of whether they have themselves stepped up with regards to the decision of such
different bank(s).
A party indicates another to perform services should be bound by and obligated to repay the
instructed party against all commitments and obligations forced by foreign laws and usages.
Article-12 Disclaimer on Documents Received
Banks must establish that the documents got seem, by all accounts, to be as recorded in the
collection direction and must advise by media transmission or, if that isn't possible, by other
quick means, without delay. Banks have no further commitment in this regard. If the
documents don't have all the earmarks of being recorded, the dispatching bank might be
blocked from debating the sort and number of records received by the collecting bank.
Article-13 Disclaimer on Effectiveness of Documents
Banks expect no risk or obligation regarding the frame, adequacy, exactness, validity,
misrepresentation or lawful impact of any documents(s), or for the general as well as specific
conditions stipulated in the document(s) or superimposed consequently. stipulated in the
document(s) or superimposed consequently
Article-14 Disclaimer on Delays, Loss in Transit and Translation
Banks expect no obligation or duty regarding the results for delay/late or any loss of
message(s)or any errors arising in telecommunication. Banks not to be responsible for any late
occurs from the requirement to obtain specification of any indications received.
Article-15 Force Majeure
Banks accept no risk or duty regarding outcomes emerging out of the intrusion of
their business by Acts of God, riots, common tumults, rebellions, wars, or some other causes
outside their ability to control or by strikes or lockouts.

Article-16 Payment Without Delay

Amounts gathered (less charges or potentially distributions and additionally costs where
material) must be made accessible immediately to the gathering from whom the accumulation
direction was gotten as per the terms and states of the gathering direction.
Article-17 Payment in Local Currency
Documents payable in the currency of payment country's local currency the Presenting bank
must, unless generally indicates in the collection indication release the documents to the
drawee against payment in local currency.

Article-18 Payment in Foreign Currency

On account of reports payable in the cash other than that of the nation of installment (outside
cash), the exhibiting bank must, unless generally taught in the collection guideline, discharge
the reports to the drawee against payment in the designated foreign currency only if such
foreign currency can immediately be remitted in accordance with the instruction mentioned in
the collection indication.
Article-19 Partial Payment
In regard of clear collection, partial payment might be acknowledged if and to the degree to
which what's more, on the conditions on which partial payments are approved by the law in
drive in the place of installment. The money related document(s) will be discharged to the
drawee just when full payment is received.
In regard of Documentary collection, partial payment may be acknowledged assuming
particularly approved in the collection rules. Be that as it may, unless otherwise instructed the
presenting bank is not responsible for any result occurring from delay in document delivery.
Article-20 Interest
Collection guideline indicates that if interest should be received and the drawee declines to pay
such interest, the presenting bank may convey the document(s) against payment or
acceptance. Where such interest is to be received, the collection indicates the interest rate and
period and calculation of interest.
Where it indicates the collection process interest may not be waived and drawee refuses such
interest to pay the presenting bank not deliver the documents and not liable for any
consequences for delay in documents delivery. When interest payment is refused the
presenting bank must inform by tele-transmission or by different quick means immediately the
bank from which the collection direction was received.
Article-21 Charges and Expenses
If the collection direction determines that accumulation charges as well as costs are to be for
record of the drawee and the drawee declines to pay them, the presenting bank may convey
the document(s) against payment or acceptance or on different terms and conditions all things
considered.
Where the collection direction explicitly expresses that charges or costs may not be deferred
and the drawee declines to pay such charges as well as costs, the presenting bank will not
convey documents and not be responsible for any consequences arising out of any
delay. At the point when installment of accumulation charges or potentially costs has been
rejected the exhibiting bank must illuminate by media transmission or, if that isn't conceivable,
by different quick means immediately the bank from whom the accumulation direction was
gotten.

In all situations where in the express terms of a collection direction or under these Rules,
disbursement or potentially costs as well as collection charges are to be borne by the principal.
Banks maintain all authority to request payment of charges or any costs ahead of time from the
party from whom the collection guideline was received, to covers expenses and pending receipt
of such payment.
Article-22 Acceptance
The Presenting bank is liable of seeing that the type of the acknowledgment of a bill of trade
gives off an impression of being finished and redress, however isn't in charge of the validity of
any signature or for the authority of any signatory to sign the acknowledgment.
Article-23 Promissory Notes and Other Instruments
The presenting bank isn't liable for justification of any signature or for the authority of any
signatory.
Article-24 Protest
The Collection indication should give particular directions with respect to dissent in case of non-
payment.
Without such particular direction, the banks worried about the accumulation have no
commitment to have the document protested for non-payment.
Article-25 Case-of-Need
On the off chance that the foremost designates an agent to go about as instance of-require in
case of non-payment and additionally rejection the collection guideline ought to plainly and
completely demonstrate the forces of such instance of-require. Without such sign banks won't
acknowledge any indication from the instance of-require.
Article- 26 Advises
Collecting banks are advises as follows:
Form of Advice: Contains all details appropriate collection informations and instructions.
Method of Advice: Remitting bank to educate the collecting bank with respect to the method
by which the prompts definite such as Advice of Payment, Advice of Acceptance
and Advice of Non-payment and/or Non-Acceptance.