Letters of Credit: ISP98 Forms, UCC Article 5, UCP, Draw Procedures, and More
Drafting Commercial vs. Standby, Conditional vs. Unconditional, Limited Term vs. Evergreen, Transfer Provisions
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will prepare counsel to draft and review commercial and standby letters of credit (LCs) that comply with Article 5 of the UCC as well as rules of practice, including International Standby Practices 1998 (ISP98) and Uniform Customs and Practice for Documentary Credits (UCP). The panelist will discuss standard LC forms currently used by the banking industry (including forms now available for LCs issued subject to ISP98), the various transaction types using LCs, procedures for issuance and drawing upon LCs, and critical provisions to consider in tailoring an LC to fit your 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
- Bankruptcy considerations
- Alternative credit enhancements
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