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.
Gary Collyer is Managing Director of Collyer Consulting Global Ltd and Technical Editor of the ICC Banking Commission. Collyer is a co-owner of www.tradefinance.training
