Sanctions clauses that are wisely or imprudently constructed continue to be inserted into trade finance instruments and may heavily impact the legal rights and transactional obligations of involved parties.
Various articles from the June 2024 edition of DCW caught the attention of ICC Banking Commission Senior Technical Advisor Dave Meynell who offers the following comments.
In a high profile case involving standby letters of credit issued in connection with aircraft leases to Russian airlines and
Learnings and reflections from the Kuvera Resources v. JPMorgan Chase appeal from 2023.
In the November/December 2023 issue of Documentary Credit World, there is an interesting piece of the Litigation Digest summary of the Singapore Court of Appeal case of Kuvera Resources Pte Ltd v. JPMorgan Chase Bank N.A. It was about the Confirming Bank’s refusal to pay the Beneficiary on an otherwise complying presentation on grounds relating to US sanctions. Beneficiary sued Confirming Bank for wrongful dishonor, alleging breach of contract. The trial court in Singapore ruled in favour of Confirming Bank, which was subsequently reversed by the appellate court.
see Kuvera Resources case history
Whilst the case involves the Confirming Bank incorporating a sanctions clause (the Sanctions Clause) in its confirmation of a UCP600 documentary credit, as well as issues regarding the exercising of the Sanctions Clause in the dishonor of an otherwise complying presentation, the case offers some valuable insights for the trade finance community, including banks as well as beneficiaries.
Sanctions clauses that are wisely or imprudently constructed continue to be inserted into trade finance instruments and may heavily impact the legal rights and transactional obligations of involved parties.
In a high profile case involving standby letters of credit issued in connection with aircraft leases to Russian airlines and
On 10 June 2024, the US Treasury’s Office of Foreign Assets Control (OFAC) designated for sanctions ten individuals, entities,
Exploring the steps and considerations for banks to effectively navigate the complexities of true sale unfunded risk participation, identifying product and regulatory nuances, and understanding practical applications through use case scenarios.
Sign up to receive occasional DCW emails highlighting content
