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.
On 16 Aug, Bangladesh Bank’s Foreign Exchange Policy Department issued FE Circular Letter No. 31 to clarify that foreign currency retention quota accounts can be credited up to the permissible limit in percentage of proceeds realized under inland back-to-back LCs.
