Uniform Customs and Practice for documentary credits (1993 Revision) A GENERAL PROVISIONS AND DEFINITIONS Article 1. Application of UCP The Uniform Customs and Practice for Documentary Cred its, 1993 Revision, ICC Publication No 500, shall apply to all documentary Credits(including to the extent to which they may be applicable, Standby Letter(s )of Cred it)where they are incorporated into the text of the Cred it. They are binding on all parties thereto, unless otherwise expressly stipulated in the Credit Article 2. Meaning of Credit For the purposes of these Articles, the expressions"Documentary Credit(s)"and "Standby Letter(s)of Cred it "(hereinafter referred to as"Credit(s)"), mean any arrangement, however named or described, whereby a bank(the"Issuing Bank")acting at the request and on the instructions of a customer(the"Applicant")or on its own behalf. i)is to make a payment to or to the order of a third party (the "Beneficiary), or is to accept and pay bills of exchange(Draft(s) drawn by the Beneficiary, or ii)authorizes another bank to effect such payment, or to accept and pay such bills of exchange(Draft(s),or i) authorizes another bank to negotiate, against stipulated document(s), provided that the terms and conditions of the Credit are com plied with. For the purposes of these Articles, branches of a bank in different countries are considered another bank Article 3. Credits y. Contracts a. Credits, by their nature, are separate transactions from the sales or other contract(s)on which they may be based and banks are in no way concerned with or bound by such contract(s), even if any reference whatsoever to such contract(s) is included in the Cred it Consequently, the undertaking of a bank to pay, accept and pay Draft(s)or negotiate and/or to fulfill any other obligation under the Credit, is not subject to claims or defenses by the applicant resulting from his relationships with the Issuing Bank or the Beneficiary b. a Beneficiary can in no case avail himself of the contractual relationships existing between the banks or between the Applicant and the issuing bankUniform Customs and Practice for Documentary Credits (1993 Revision) A. GENERAL PROVISIONS AND DEFINITIONS Article 1. Application of UCP The Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500, shall apply to all documentary Credits (including to the extent to which they may be applicable, Standby Letter(s) of Credit) where they are incorporated into the text of the Credit. They are binding on all parties thereto, unless otherwise expressly stipulated in the Credit. Article 2. Meaning of Credit For the purposes of these Articles, the expressions "Documentary Credit (s)" and "Standby Letter(s) of Credit" (hereinafter referred to as "Credit (s) "), mean any arrangement, however named or described, whereby a bank(the "Issuing Bank") acting at the request and on the instructions of a customer (the "Applicant") or on its own behalf, i) is to make a payment to or to the order of a third party(the "Beneficiary"), or is to accept and pay bills of exchange(Draft(s)) drawn by the Beneficiary, or ii) authorizes another bank to effect such payment, or to accept and pay such bills of exchange(Draft(s)), or iii) authorizes another bank to negotiate, against stipulated document(s), provided that the terms and conditions of the Credit are complied with. For the purposes of these Articles, branches of a bank in different countries are considered another bank. Article 3. Credits v. Contracts a. Credits, by their nature, are separate transactions from the sales or other contract(s) on which they may be based and banks are in no way concerned with or bound by such contract(s), even if any reference whatsoever to such contract(s) is included in the Credit. Consequently, the undertaking of a bank to pay, accept and pay Draft(s) or negotiate and/or to fulfill any other obligation under the Credit, is not subject to claims or defenses by the Applicant resulting from his relationships with the Issuing Bank or the Beneficiary. b. A Beneficiary can in no case avail himself of the contractual relationships existing between the banks or between the Applicant and the Issuing Bank