Irrevocable payment order
An irrevocable payment order ( English irrevocable payment order ) is in foreign trade financing , especially in letters of credit and documentary collections of the payment order of an importer to his bank , the exporter under certain conditions of payment of the goods to be paid.
General
A payment order ( transfer , direct debit ) is in the payment service law of the EU member states in Germany according to § 675p Abs. 1 BGB as a rule irrevocable after its receipt by the executing credit institution , because the payment order can only be revoked in exceptional cases. Exceptions are direct debits and standing orders . A direct debit can be revoked up to the business day before it is due (Section 675p Paragraph 2 BGB); according to Section 675p Paragraph 3 BGB, this also applies to standing orders. Otherwise, revocability is only possible with an existing agreement (Section 675p Paragraph 4 BGB).
procedure
These regulations for international payment transactions can be used for letters of credit and document collections, in that the importer who is liable to pay enters into an agreement with his house bank in Germany in accordance with Section 675p (4) BGB, according to which the general irrevocability of his payment order only applies in the event that the payee (exporter ) fulfills the conditions set by the importer. The most important condition is the unconditional delivery of the goods to the importer. If this condition is met, the importer issues a foreign trade payment order to his house bank in order to pay the purchase price of the goods to the exporter's bank account . The importer's house bank can confirm the existence of an irrevocable payment order to the exporter's bank details, which represents an abstract promise of debt ( § 780 , § 784 BGB). Also in the documentary collection the possibility of "documents against irrevocable payment order" is ( english documents against irrevocable payment order ) is provided.
function
The importer can use the irrevocable payment order as a payment instrument without having to use liquidity (from bank balances or credit lines ) at an early stage . Even exporters who do not produce themselves but act as traders and who have to pay their suppliers before the purchase price is received by the importer can also use the irrevocable payment order. To do this, they give the crediting bank the irrevocable payment order to pay a certain amount from the proceeds of the credit for the delivery of certain goods to its sub-supplier . The exporter's bank will then issue a document in favor of his sub-supplier in which it undertakes to make payment to the sub-supplier after receipt of the proceeds from the letter of credit on the exporter's account.
literature
- Graf von Bernstorff, "Documents against irrevocable payment orders" as a form of payment in foreign trade, in: RIW / AWD, 1985, p. 14 ff.
Individual evidence
- ↑ Guido Toussaint, The Law of Payment Transactions at a Glance , 2009, p. 102
- ↑ Manfred Obermüller, The bank in bankruptcy of their customers , 1972, p. 69
- ↑ Düsseldorf Higher Regional Court , WM 1978, 124, 125
- ^ Siegfried G. Häberle, Das neue Lexikon der Betriebswirtschaftslehre , Volume AE, 2008, p. 300