ICC Digital Library Forum

Dear all,

Pls give your opinion and advice for the following case:

If an L/C issued by non-English bank and it state "THE CONSTRUCTION, VALIDITY AND PERFORMANCE OF THIS LETTER OF CREDIT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH ENGLISH LAW", what is the risk that issuing bank may face with? Should issuing bank open an L/C like that?

Thank you so much.

Many standby LCs choose law, typically the law of the place where the issuer is located, but some choose English or New York or other law and that choice is likely to be enforced by whatever court is asked to rule on applicable law. Regards, Jim Barnes