Letters of Credit in Real Estate Finance and Lease Transactions: ISP98 Forms, UCC Article 5, Draw Procedures
Commercial vs. Standby, Conditional vs. Unconditional, Limited Term vs. Evergreen, Transfer Provisions
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will prepare counsel to draft and review commercial and standby letters of credit (LCs) for construction loans, permanent loans, and commercial leases. The panelist will discuss current rules of practice, including International Standby Practices 1998 (ISP98) and Uniform Customs and Practice for Documentary Credits (UCP), procedures for issuing and drawing upon LCs, and critical provisions for tailoring an LC to the transaction.
- Types of LCs: commercial vs. standby
- Collateral and other bank requirements for issuance
- LC rules and definitions
- UCC Article 5
- International Standby Practices 1998 (ISP98)
- Uniform Customs and Practice for Documentary Credits (UCP)
- Standard forms
- Deal-specific concerns
- Conditional vs. unconditional
- Limited (typically one year) term vs. evergreen
- Draw procedures
The panelist will review these and other high priority issues:
- What essential components should counsel include when structuring and drafting LCs?
- What UCC requirements should counsel consider when drafting LCs?
- What common issues arise in LC practice, and how should those issues be handled?
- What are the potential pitfalls in choosing ISP vs. UCP, and how can counsel address these issues?
Vice President, Investment Banking Division
Goldman Sachs Bank USA
With over 30 years of experience in international trade finance, he authored Users’ Handbook to Documentary... | Read More
With over 30 years of experience in international trade finance, he authored Users’ Handbook to Documentary Credits under UCP600, Documentary Payments & Short-Term Trade Finance, and The Regulatory Environment of Letters of Credit and Trade Finance. He is actively involved in establishing national and worldwide standard practices for LCs and participated in the most recent revision of the UCP600.Close