Bank A has issued a counter Standby, subject to ISP98, in favour of a Bank B to induce Bank B to issue a guarantee. Bank A send its counter Standby to its parent (say Bank C) in London with a request to advise it to Bank B by adding parent's confirmation.
Question is can a parent bank (or any bank for this matter) add its confirmation in a counter Standby?
Shahed
[edited 11/9/2015 10:00:38 PM]
Confirmation of a counter SBLC
Confirmation of a counter SBLC
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 the topic of confirmed counter standbys, I suggest consulting the ISP98 standby forms, particularly Forms 6, 7, and 8 and the extensive endnotes that explain counter standbys and confirmed standbys. They are freely available on www.iiblp.org.
ISP98 Rule 2.02 provides that different branches of the same bank may act under a standby in different capacities.
Regards, Jim Barnes
[edited 11/10/2015 12:23:14 AM]
On the topic of confirmed counter standbys, I suggest consulting the ISP98 standby forms, particularly Forms 6, 7, and 8 and the extensive endnotes that explain counter standbys and confirmed standbys. They are freely available on www.iiblp.org.
ISP98 Rule 2.02 provides that different branches of the same bank may act under a standby in different capacities.
Regards, Jim Barnes
[edited 11/10/2015 12:23:14 AM]