A non-nominated bank has no UCP reimbursement rights. It may have rights as an assignee of the beneficiary, but assignee rights are unlikely to protect against any defense that is available against the beneficiary and may be even more limited under applicable laws on assignments. (US LC law protects...

I would interpret this as providing that upon incurring a deferred payment undertaking the issuer "will", meaning must, pay at sight if the beneficiary so requests. It leaves unclear whether the "sight payment" would be a purchase or a payment of the issuer's incurred DPU. More i...

ISP98 includes Rule 4.21 to address any standby, however named, that requests the beneficiary to issue a separate undertaking to another. Nothing in that rule or any ISP rule would prohibit confirmation of the issuer's standby or of the beneficiary's separate ISP98 standby or other undertaking. On t...

There is an excellent annotated form of transferable standby LC subject to ISP98 freely available at www.iiblp.org. Regards, Jim Barnes

ISP98 Rule 3.09 treats extend or pay demands, first and foremost, as payment demands that must be examined as such under the rules on preclusion. Accordingly, the issuer should formally refuse the demand on any available basis unless it timely issues an amendment extending the expiry date after rece...

ISP98 Rule 6.02(b) provides a number of default rules that would protect an issuer where "a standby states that it is transferable without further provision". I would worry that this standby text includes a further provision so that the issuer could not rely on those protections, particula...

Bank B is a nominated bank per UCP600 definition. Whether or not Bank B confirms, the beneficiary may present to Bank B its time draft drawn on Bank B. If Bank B accepts that draft, it could prepay or purchase it per UCP600 Art 12 (and 7c). The beneficiary may by-pass Bank B and present its draft dr...

Providing for a single "place of expiry" under a credit that permits presentation at more than one place introduces ambiguity and, therefore, risk that credit expiry depends on the date the issuing bank receives documents forwarded by the nominated bank.

Regards, Jim Barnes

A presenting bank's rights of reimbursement under 7c depend on the text of that sub-article. That said, a presenting bank may also have or acquire rights from the beneficiary. It may have its own rights as the party transferring possession of documents if the issuer retains them without paying. Thes...

I try to discourage providing in the text of a standby the effects of sending a non-extension notice other than on the expiration date. The underlying obligation should facilitate a drawing on the basis of whatever default or other statement is required to demand payment under the credit and indicat...