The Official Commentary on the International Standby Practices

  • ID: 2300217
  • Book
  • Region: Global
  • 373 Pages
  • Institute of International Banking Law & Practice
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A ""Must"" for anyone who works with Standby Letters of Credit on a regular basis, THE OFFICIAL COMMENTARY ON THE INTERNATIONAL STANDBY PRACTICES is the first source that bankers, lawyers, corporates, consultants, other standby LC professionals, and academics turn to for guidance and explanation regarding ISP98.

Written by Professor James E. BYRNE and edited by James G. BARNES, each of the 89 rules of ISP98 is analyzed in depth, including context and implications. Back in print and available for the first time since 2005, THE OFFICIAL COMMENTARY ON THE INTERNATIONAL STANDBY PRACTICES delivers clear, concise explanations that are readily understood and immensely useful.

Analysis of each rule contains:
-- Statement of its origin and place in standby practice
-- Analysis of the issues addressed by the rule
-- Cross references
-- List of applicable ISP provisions
-- Reference to other sources
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Preface-Dieter Kiefer

Preface-Dan Taylor

Preface-Gary Collyer

Foreword-James G. Barnes


Rule 1: General Provisions
1.01 Scope And Application
1.02 Relationship To Law And Other Rules
1.03 Interpretative Principles
1.04 Effect Of The Rules
1.05 Exclusion Of Matters Related To Due Issuance And Fraudulent Or Abusive Drawing
1.06 Nature Of Standbys
1.07 Independence Of The Issuer-Beneficiary Relationship
1.08 Limits To Responsibilities
1.09 Defined Terms
1.10 Redundant Or Otherwise Undesirable Terms
1.11 Interpretation Of These Rules

Rule 2: Obligations
2.01 Undertaking To Honour By Issuer And Any Confirmer To Beneficiary
2.02 Obligation Of Different Branches, Agenices, Or Other Offices
2.03 Conditions To Issuance
2.04 Nomination
2.05 Advice Of Standby Or Amendment
2.06 When An Amendment Is Authorised And Binding
2.07 Routing Of Amendments

Rule 3: Presentation
3.01 Complying Presentation Under A Standby
3.02 What Constitutes A Presentation
3.03 Indentification Of Standby
3.04 Where And To Whom Complying Presentation Made
3.05 When Timely Presentation Made
3.06 Complying Medium Of Presentation
3.07 Separateness Of Each Presentation
3.08 Partial Drawing And Multiple Presentations;Amount Of Drawings
3.09 Extend Or Pay
3.10 No Notice Of Receipt Of Presentation
3.11 Issuer Waiver And Applicant Consent To Waiver
Of Presentation Rules
3.12 Original Standby Lost, Stolen, Mutilated, Or Destroyed
3.13 Expiration Date On A Non-Business Day
3.14 Closure On A Business Day And Authorization Of Another Reasonable Place For Presentation

Rule 4: Examination
4.01 Examination For Compliance
4.02 Non-Examination Of Extraneous Documents
4.03 Examination For Inconsistency
4.04 Language Of Documents
4.05 Issuer Of Documents
4.06 Date Of Documents
4.07 Required Signature On A Document
4.08 Demand Document Implied
4.09 Identical Wording And Quotation Marks
4.10 Applicant Approval
4.11 Non-Documentary Terms Or Conditions
4.12 Formality Of Statements In Documents
4.13 No Responsibility To Identify Beneficiary
4.14 Name Of Acquired Or Merged Issuer Or Confirmer
4.15 Original, Copy, And Multiple Documents
4.16 Demand For Payment
4.17 Statement Of Default Or Other Drawing Event
4.18 Negotiable Documents
4.19 Legal Or Judicial Documents
4.20 Other Documents
4.21 Request To Issue Separate Undertaking

Rule 5: Notice, Preclusion, And Disposition Of Documents
5.01 Timely Notice Of Dishonour
5.02 Statement Of Grounds For Dishonour
5.03 Failure To Give Timely Notice Of Dishonour
5.04 Notice Of Expiry
5.05 Issuer Request For Applicant Waiver Without Request By Presenter
5.06 Issuer Request For Applicant Waiver Upon Request Of Presenter
5.07 Disposition Of Documents
5.08 Cover Instructions/Transmittal Letter
5.09 Applicant Notice Of Objection

Rule 6:Transfer, Assignment, And Transfer By Operation Of Law
6.01 Request To Transfer Drawing Rights
6.02 When Drawing Rights Are Transferable
6.03 Conditions To Transfer
6.04 Effect Of Transfer On Required Documents
6.05 Reimbursement For Payment Based On A Transfer
6.06 Assignment Of Proceeds
6.07 Request For Acknowledgment
6.08 Conditions To Acknowledgment Of Assignment Of Proceeds
6.09 Conflicting Claims To Proceeds
6.10 Reimbursement For Payment Based On An Assignment
6.11 Transferee By Operation Of Law
6.12 Additional Document In Event Of Drawing In Successor'S Name
6.13 Suspension Of Obligations Upon Presentation By Successor
6.14 Reimbursement For Payment Based On A Transfer By Operation Of Law

Rule 7: Cancellation
7.01 When An Irrevocable Standby Is Cancelled Or Terminated
7.02 Issuer'S Discretion Regarding A Decision To Cancel

Rule 8: Reimbursement Obligations
8.01 Right To Reimbursement
8.02 Charges For Fees And Costs
8.03 Refund Of Reimbursement
8.04 Bank-To-Bank Reimbursement

Rule 9: Timing
9.01 Duration Of Standby
9.02 Effect Of Expiration On Nominated Person
9.03 Calculation Of Time
9.04 Time Of Day Of Expiration
9.05 Retention Of Standby

Rule 10: Syndication / Participation
10.01 Syndication
10.02 Participation

Appendix: International Standby Practices—Full Text


Selected Bibliography


About The Author And Editor
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