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.
ICC republished four guidance papers on recommended principles and usages around the UCP600 rules in February 2023. The collection of materials address the following topics:
“Recommendations in Respect of the Requirements for an On Board Notation” (Document No. 470/1128, 22 April 2010);
“Notes on the Principle of Strict Compliance” (Document No. 470/1261; 24 May 2016);
“Additional Material Relating to the Guidance Paper – The Use of Drafts under Documentary Credits” (8 January 2019); and
“Guidance Notes for Documentary Credit Formats” (17 December 2019).
