This month, we're spotlighting the challenges and hard-earned lessons emerging from LC disputes and sanctions enforcement crackdowns. Carter
DCW maintains a list of recently-decided court cases involving commercial letters of credit, standby LCs, demand guarantees, and other trade
Continuing an annual survey written by top legal experts each year since 1992, Carter Klein examines the most significant letter of credit issues emerging from cases decided in 2023.
A DCW reader asked about the impact of a specific clause in a counter guarantee issued by a US bank under ISP98 and Saudi law. This clause raises concerns about the presentation of documents and potential payment restrictions
From June 2013's DCW
A DCW Reader Writes:
May I have your opinion on the following query:
A Counter Guarantor Bank issued its Counter Guarantee in favor of a Guarantor (Bank). The Counter Guarantee is subject to ISP98, whereas the Guarantee that will be issued by the Guarantor is subject to Saudi Law.
Guarantee is payable against presentation of a simple demand.
The Counter Guarantor (domiciled in USA) incorporated the following paragraph in their Counter Guarantee indemnity:
a) What is the impact of this paragraph on the document (simple demand)?
b) Is there any requirement of a document/certificate that should be presented by the Guarantor to the Counter Guarantor in the event that there is a call for payment?
I am aware of the ICC Guidance Paper on the Use of Sanction Clauses for Trade Related but am unsure if it is useful in this situation.
DCW Responds:
For the 25th consecutive year, the Institute of International Banking Law & Practice conducted its one-day Letter of Credit Law Summit. This Executive Summary provides an overview of topics discussed and debated at the conference hosted by Hogan Lovells in New York and conducted as a hybrid event.
Saudi IT firm, Al Moammar Information Systems Company (MIS), obtained a SAR 252 million (USD 67m) financing facility from Riyad
When issuing banks insert complex reimbursement terms and self-serving conditions into their credits, it distorts the purpose of the product, causes problems for confirming banks, and drives exporters away from using LCs.
This Executive Summary provides an overview of topics discussed and debated by leading professionals at the conference.
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