1. Islamic Letters of Credit
  2. Define Attributes specific to an Islamic Product
  3. Generate Islamic LC Expiry/Closure Advices
  4. Specify Applicable Rules of a Guarantee

3.2.3 Specify Applicable Rules of a Guarantee

You need to indicate the rules applicable for the guarantee.

Indicate the rule applicable by selecting the appropriate value from the list of values. The available values are as follows:
  • URDG: The guarantee is subjected to the ICC Uniform rules of Demand Guarantees
  • URCG: The guarantee is subjected to the ICC Uniform rules of Contract Guarantees
  • OTHR: The guarantee is subjected to another set of rules
  • NONE: The guarantee is not subjected to any rules

Note:

The above values are applicable only for Guarantee type of products.

The default value of Applicable Rule is set to NONE. This is applicable only for Guarantee type of products.

For Import and Export type of products, the following values are applicable:
  • UCP LATEST VERSION
  • EUCP LATEST VERSION
  • UCPURR LATEST VERSION
  • EUCPURR LATEST VERSION
  • ISP LATEST VERSION
  • OTHR: The guarantee is subjected to another set of rules

Note:

  • If the guarantee is subjected to rules other than that provided in the list of values, the applicable rule must be indicated as ‘OTHR’
  • The default value of Applicable Rule is set to UCP LATEST VERSION. This is applicable only for Import/Export type of products
  • Based on the product type, the list of values will display rules applicable for the product.
  • Applicable Rule’ and ‘Rule Narrative’ will be enabled only for import, export and guarantee product types

Rule Narrative

This is enabled only if ‘Applicable Rule’ is set to ‘OTHR’. It is mandatory to specify the rule narrative if the applicable rule is ‘OTHR’.You need to describe the Applicable rule here. Oracle Trade Fince will validate the rule narrative for slashes.

Note:

  • ‘Rule Narrative’ should not start or end with ‘/’ or should not have two consecutive slashes
  • The above fields will be enabled only for a guarantee
  • The Applicable Rule and Rule Narrative cannot be amended after authorization

Partial Confirmation Allowed

Check this box to confirm the partial amount. The remaining amount can be confirmed after you receive the approval from the external agent.

Note:

Partial confirmation is allowed only for Islamic export LC.

Applicable Rule For Reimbursement

Select applicable rule for which you need a reimbursement from the adjoining drop-down list. This list displays the following:
  • URR Latest Version–Select if the applicable type is latest version of URR.
  • NOTURR–Select if the applicable type is NOTURR.

Parent topic: Generate Islamic LC Expiry/Closure Advices