First created and introduced in 2014, ISP98 Form 11.1 is intended to help a government beneficiary develop new SBLC forms or improve and update existing forms and to incorporate those forms into regulations and underlying contracts. Many government agencies require or permit SBLCs to be issued in their favor to support a variety of underlying obligations. Many do so under statutes, regulations, contracts, or guidelines that indicate who may issue a standby in favor of the government and what the standby should provide, typically by requiring that the SBLC be substantially in the form of a standby text set out in the government's regulation or contract.
With this in mind, this form should promote clarity and efficiency for all concerned and be reasonably acceptable to applicants and issuers, as well as protect the interests of government beneficiaries. Even if not accepted for use in its entirety, ISP98 Form 11.1 offers ideas for possible improvement of particularly difficult terms and conditions encountered with certain government-mandated standbys. Reference notes explain the text of the form and provide alternative and additional standby wording. They also explain why some wording commonly found in standbys has been omitted as unnecessary or undesirable.
