This month, we explore how digitalisation is reshaping commercial law across key jurisdictions. Marek Dubovec compares UCC Article 12 and UNCITRAL’s MLETR, focusing on core differences in scope, control, negotiability, and governing law. Muhammad Ali Haider Khan revisits UCP600 Article 6(d)(i), questioning whether the rule remains relevant in today’s SWIFT-driven environment. Dave Meynell offers a technical response to criticism of ICC Opinion TA.948, clarifying its alignment with ISBP 821 and the intended function of ICC Opinions.
Also this month: enforcement actions in Singapore over AML lapses, New York’s adoption of UCC amendments, and a blockchain-enabled LC issued in Bangladesh. In the Litigation Digest, a U.S. court finds that a standby LC does not qualify as a supersedeas bond, while Singapore’s appellate court overturns a USD 146 million ruling against a former director. We close with a Scam Survey case from Canada involving a forged standby and investor fraud.
Digitalisation is reshaping commercial law on both sides of the Atlantic. This comparative note breaks down where UNCITRAL’s Model Law on Electronic Transferable Records and the new UCC Article 12 part company—scope, control, holder rights and governing law—while tracking their uptake (10 MLETR adopters, 31 U.S. states). It explains how MLETR mirrors paper rules yet UCC introduces “controllable electronic records” and two new asset types.
UCP600 Article 6(d)(i) was introduced to correct a practice that hindered the beneficiary’s ability to comply with expiry terms. This article revisits how and why the provision emerged, how it has been handled since UCP500, and whether it still belongs in the current rule set, especially given changes in SWIFT messaging and digitization of credit practices.
Does the absence of endorsement on a draft amount to a discrepancy under UCP 600? In a detailed follow-up to Rupnarayan Bose’s recent critique of ICC Opinion TA948, Dave Meynell, Senior Technical Adviser to the ICC Banking Commission, offers clarification on the rationale behind the Opinion and its alignment with ISBP 821. Drawing on extensive feedback from ICC National Committees, the piece also explores the nuanced meaning of “international standard banking practice” and the limits of what ICC Opinions are designed to do.
Trade compliance teams face rising challenges in detecting military dual-use goods under shifting export controls. In this expert reprint from ITFA, Byron McKinney and Edward Stoltenberg outline why list-based screening is no longer enough—and how technologies like APIs, structured data, and machine learning are reshaping detection strategies.
A decade after their business closed, the Newmans sued HSBC over a letter of credit they said was never properly cancelled. But the court found no ongoing harm, and noted that the disputed funds had already been accessed. All claims were dismissed as time-barred. The case underscores how timing can quietly determine the fate of LC-related litigation.
Can a standby LC stand in for a supersedeas bond? In Richardson v. Prisoner Transport Services, a U.S. federal court said no—finding that unilateral termination clauses and insufficient payout assurances rendered the standby letter of credit inadequate security under Rule 62(b). The decision highlights key differences between evergreen clauses and true judgment protection.
The Alberta Securities Commission has permanently banned Raymond Cawaling and RTAX Financial Corp for illegally distributing securities and misappropriating over CAD 460,000 in a Ponzi-like scheme. The case involved a forged standby letter of credit and false claims of investment in a gold mining project. Cawaling and RTAX were also ordered to pay penalties and costs totaling over CAD 700,000.
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Chris Sandler is the COO of the Institute of International Banking Law & Practice, the organization which produces DCW. Reach Chris at sandler@iiblp.org
