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.
Dr Jonathan Brewer OBE is a Visiting Professor at King’s College London, based in New York. He consultants on sanctions and WMD proliferation and a former Acting Coordinator of the UN Panel on DPRK.
