Mike Avidon Provides an Update on Bank Payment Obligations
July 11, 2012
Standby Letters of Credit
The Institute for International Banking Law & Practice is in the process of releasing model standby letter of credit forms for use under the International Standby Practices 1998, International Chamber of Commerce (ICC) Pub. No. 590. These forms will facilitate the use of standby letters of credit for those not already familiar with this important financial instrument and streamline the process of drafting and negotiating the text of standby letters of credit for even experienced users.
The attached newsletter shows that in just the two years since the introduction of the Uniform Rules for Demand Guarantees, ICC Pub. No. 758 ("URDG 758"), URDG 758 has made excellent progress in surpassing its predecessor, URDG 458, as the rules of choice for demand guarantees (and counter-guarantees).
Other Bank Payment Obligations
Work continues on the proposed Uniform Rules for Bank Payment Obligations ("URBPO"). The URBPO are the fruit of a collaboration between the ICC and SWIFT (the Society for Worldwide Interbank Financial Telecommunication) and are designed to facilitate supply chain finance. If all goes well, the rules may be published in 2013."
We are well versed in these developments, with one of our partners being actively involved in these matters. If you have questions about any of these initiatives, please do not hesitate to contact Michael Evan "Mike" Avidon (email@example.com; 212-554-7854) or another Moses & Singer attorney.