Debate persists on when an independent undertaking is issued: upon leaving the issuer’s control or only when advised to the beneficiary. Various rules clarify issuance timing.
On 7 January 2022, the Supreme Court of the State of New York, County of New York, Commercial Division, issued two decisions, granting summary judgment to BNP Paribas, Singapore Branch, for more than USD 46 million plus interest against Natixis, New York Branch.
The decisions involved two related cases. The first, Natixis, New York Branch v. BNP Paribas, No. 651510/2020, slip op. (N.Y. Sup. Ct. Jan. 7, 2022), was brought by Natixis for a judgment declaring it was entitled to set off a debt from a payment made to BNP under an LC. The second, BNP Paribas, Singapore Branch v. Natixis, New York Branch, No. 651764/2020, slip op. (N.Y. Sup. Ct. Jan. 7, 2022), was brought by BNP for summary judgment in lieu of complaint for the balance of the amount drawn.
The court held that Natixis had failed to raise an issue of fact, that it had waived any right of setoff, and it was too late for Natixis to claim now that BNP was not a holder in due course. Accordingly, the court awarded judgment to BNP.
Debate persists on when an independent undertaking is issued: upon leaving the issuer’s control or only when advised to the beneficiary. Various rules clarify issuance timing.
On 15 Feb 2023, DCSA members pledged to issue 50% of bills of lading (B/Ls) electronically by 2028 and 100% by 2030, aiming to cut costs and boost global trade.
