How UCC Article 5 governs letters of credit in the US, its non-variable provisions, and the legal nuances that affect issuers and beneficiaries.
English Court of Appeal (Civil Division) reversed trial judgments in favour of standby beneficiaries.
Canada's Court of Appeal of Alberta affirmed trial judgment, dismissing LC Applicant's appeal and terminating short term interim injunction.
Upon request of its customer, Lummus Technology Heat Transfer B.V., Credit Agricole Corporate & Investment Bank issued a letter of credit in favor of LLC Kirishinefteorgsintez, a Russian company. The LC was obtained to support design and manufacturing by Lummus of specialized technology for use by the beneficiary in its oil and gas business. AO UniCredit Bank, based in Russia, added its confirmation.
Underlying contract performance was paused following Russia’s invasion of Ukraine. After LLC Kirishinefteorgsintez demanded payment from AO UniCredit Bank, the confirming bank honored. When AO UniCredit Bank turned to the issuer for reimbursement, Credit Agricole dishonored, “in part on the ground that providing the reimbursement would violate the international sanctions regime against Russia”.
How UCC Article 5 governs letters of credit in the US, its non-variable provisions, and the legal nuances that affect issuers and beneficiaries.
![Pacific Atlantic Pipeline Construction Inc. v. Coastal Gaslink Ltd. [2024]](/content/images/size/w30/2024/08/pacific-atlantic-pipeline-case-summary-dcw.jpeg)
Canada's Court of Appeal of Alberta affirmed trial judgment, dismissing LC Applicant's appeal and terminating short term interim injunction.
English Court of Appeal (Civil Division) reversed trial judgments in favour of standby beneficiaries.
![Eurobank Ergasias S.A. v. Bombardier Inc. [2024]](/content/images/size/w30/2024/08/eurobank-v-bombadier-court-case-dcw.jpeg)
The Canadian Supreme Court affirmed Quebec appellate and trial courts, upholding permanent injunction restraining Counter-Guarantor against payment of demand by Counter-Guarantee Beneficiary.
Sign up to receive occasional DCW emails highlighting content
