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.
Scott Scrosati has worked in trade finance at National Bank of Canada, including as Senior Advisor and as a Manager of Trade Operations, for over 15 years. He holds the CDCS and CTFC designations.
