The ICC Banking Commission’s quarterly meeting, held via Zoom on 5 August 2025, covered three draft opinions, updates on Technical Advisory Briefings, and the status of the ISBP Revision and ISBP Education Project.
From courtrooms in Illinois to conference halls in Singapore, this issue unpacks the rulings, risks, and rule debates in today’
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?
Years after Lessees attempted to cancel LC, they sued Successor Bank for conversion, breach of contract, unjust enrichment, and damages.
To secure their obligations under a commercial lease, Michael and Linda Newman (Lessees) obtained a USD 25,000 letter of credit issued by Republic National Bank (Issuer). Lessees also obtained a USD 300,000 line of credit from Issuer which Lessees collateralized by depositing USD 500,000 worth of stock certificates with Issuer. Issuer was subsequently acquired by HSBC Bank USA, N.A. (Successor). After Lessees’ business wound down, Lessees attempted to have the LC cancelled on two occasions with the second request including the original LC. Apparently, Successor failed to cancel the LC “for reasons that are unknown.” Subsequently, with Lessees’ line of credit cancelled, Successor agreed to release the collateral previously held by Issuer if Lessees agreed to deposit USD 25,000 into a savings account as collateral for the LC. Lessees agreed.
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