Because standbys and demand guarantees often contain automatic extension clauses, ICC Opinion TA954 offers important lessons for practice and the need for sound drafting of such clauses.
Regarding possible revision of ICC Rules and/or Practices, the ICC Banking Commission announced on 12 July 2022 that the deadline for feedback from ICC National Committees on the matter was extended to end- September 2022 (the closing date for comment was later specified as 5 September).
As of mid-July, insufficient feedback had been received to determine whether UCP and/or ISBP should be revised. Up to that point, an ICC survey of views on the content and structure of ICC Rules and Practices for documentary credits indicated that a majority of respondents were either “satisfied” or “very satisfied” with UCP600 (58%) and ISBP745 (56%).
The sense is that while UCP600 remains robust, there may be movement toward a revision of ISBP745 but indications from ICC are that much more feedback is needed to make a strong business case for revision.
