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.
Khalil MATAR CDCS, CCSA, CRMA, CIA, CFSA, MBA is Deputy General Manager, Internal Audit Group, Alinma Bank, Saudi Arabia. Mr. Matar has been involved in trade finance since 1992.
Sanctions clauses that are wisely or imprudently constructed continue to be inserted into trade finance instruments and may heavily impact the legal rights and transactional obligations of involved parties.
In 2012, Professor James E. Byrne identified six emerging trends affecting the continued value and profitability of LCs. In their capacity as DCW Editorial Advisory Board members, experienced practitioners offer commentary
