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.
The ICC announced on 13 August 2023 release of the first application programming interface (API) industry standards for bank guarantees and standby letters of credit in a joint effort with Swift. The collaborative work involved banks, corporates, fintech platforms, and service providers to create innovative standards to streamline the entire life cycle of financial instruments, including issuance, advising, amendments, cancellations, and claims.
In another post, DCW will report further on what this development means for trade finance practitioners and next steps regarding testing, implementation, and adoption by the industry.
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?
