Inoperative Conditions

So-called “inoperative conditions” regularly trouble LC users because there are both appropriate and inappropriate ways of utilizing them. Such conditions can provide useful protection to counterparties to the underlying transaction or can cause serious problems for LC specialists and their institutions.

During a one-hour “Webinar” presentation (web-based seminar) on 19 April 2006, Professor James E. Byrne and Vincent Maulella of the Institute of International Banking Law & Practice explored the proper and improper use of inoperative conditions. The two presenters, joined by James G. Barnes of Baker & McKenzie, also provided practical advice regarding drafting such conditions and avoiding dangers commonly associated with inoperative conditions.