Given the success of practice rules and banks’ ability to more readily find resources for the proper interpretation of the rule sets, does it not make sense to avoid inclusion of a governing law or jurisdiction clause?
The recent case of Illinois DNR v. Regions Bank illustrates the importance of clear wording of automatic extension clauses and issuing banks including a final expiration date in their standbys.
Chris Sandler is the COO of the Institute of International Banking Law & Practice, the organization which produces DCW. Reach Chris at sandler@iiblp.org
ICC BC reviewed 6 draft opinions during its 2021, including cases on sanctions clauses, avalisation, and non-payment. Discussions drew input from 33 National Committees and addressed evolving practice, legal interpretation, and rule clarity.
