Unpublished work by Prof. Byrne examines the first of four terms contained in ISP98 Rule 1.09(c) that provide terminology for use in standbys that permit or require presentation by non-paper means.
Corporate treasury teams can attain efficiency advantages and mitigate risk by elevating their level of oversight and control of guarantees and standbys for which they are beneficiary. Alexander Paetzold of Trade Technologies explains how.
An LC's independence from the underlying transaction it supports is one of the core tenets that distinguishes this instrument type from other promises. When disputes arise, courts at times have given uneven treatment to independent undertakings with regard to the independence principle.
In the past, the answer would be no. Chang-Soon Thomas Song, Attorney at KEB Hana Bank, explains what changed and one case where a remitter was able to recover from the beneficiary’s bank.
Part 2 of a series on the trade finance skills cliff, applying ethics and moral philosophy to trade finance for something hopefully amusing and genuinely informative.
Although automatic extension is not addressed in the URDG758 rules, the ISDGP articulated in 2021 contains provisions to help interpret such terms if included in a demand guarantee.
Recent ICC guidance addresses practical trade finance issues arising from the Middle East conflict. Having a nimble strategic approach for coping with operational risk is paramount for banks.
With regard to how fraud may disturb a bank's obligation to honour under an independent undertaking, courts have used various qualifiers to describe the level necessary. In his expansive article, Dr. Alan Davidson explores the concept of "Letter of Credit Fraud" under law and in the courts.
