Chapter 1. Meet This Book
- §1.01 If You Read No Further …
- §1.02 The Third Edition: For Whom and What's New
- §1.03 Letters of Credit: A Thumbnail History
- §1.04 Risks of Letters of Credit: Tough Times Checklist
- §1.05 Letters of Credit vis-à-vis Contracts
- §1.06 “The Program”: Terminology in This Book
Chapter 2. Definitions and Distinctions
- §2.01 Definitions About Letters of Credit Quibbler's Corner—What's in a Name?
- §2.02 Commercial Letters of Credit
- §2.03 Drafts and Banker's Acceptances
- §2.04 Standby Letters of Credit
- §2.05 Use of Definitions
- §2.06 The Independence Principle
- §2.07 Distinctions from Other Instruments
- §2.08 International Demand Guarantees
- §2.09 Documentary Collection
- §2.10 “Standard Banking Practice”
- §2.11 Trade Finance Alternatives
Chapter 3. Nomenclature for Credits
- §3.01 Introduction
- §3.02 Acceptance Credit
- §3.03 Advised Credit and Specially Advised Credit
- §3.04 Back-to-Back Credit
- §3.05 Circular Credit and Circular Negotiation Credit
- §3.06 Clean Credit
- §3.07 Commercial Letter of Credit
- §3.08 Confirmed Credit
- §3.09 Counter Credit
- §3.10 Deferred Payment or Deferred Sight Credit
- §3.10A Direct Pay Credit
- §3.11 Documentary Credit
- §3.12 Domestic Credit
- §3.13 Financial Guarantee-Type Standby Letter of Credit
- §3.14 Firm Credit
- §3.15 Foreign, Export-Import, or Transit Credit
- §3.16 Inoperative Credit
- §3.17 Irrevocable Credit
- §3.18 Negotiation and Nomination: Discussion
- §3.19 Negotiation Credit
- §3.20 Notation Credit
- §3.21 Open or General Credit
- §3.22 Partial Performance Credit
- §3.23 Performance-Based Standby Letter of Credit
- §3.24 Postoperative Credit
- §3.25 Preadvised Credit
- §3.26 Preoperative Credit
- §3.27 Red Clause or Anticipatory Credit
- §3.28 Reimbursement Credit
- §3.29 Revocable Credit
- §3.30 Revolving Credit
- §3.31 Sight or Payment Credit
- §3.32 Silent Confirmation
- §3.33 Simple Credit
- §3.34 Straight Credit
- §3.35 Teletransmission Credit
- §3.36 Third-Party Credits
- §3.37 Transferable Credit
- §3.38 Two-Party Credit
- §3.39 Usance Credit
Chapter 4. Article 5 of The Uniform Commercial Code
- §4.01 UCC: Introduction
- §4.02 UCC: Fundamentals of a Letter of Credit
- §4.03 UCC: Adviser's Obligations, §5-107(c)
- §4.04 UCC: Issuer's Obligations, §5-108
- §4.05 UCC: Confirmer's Obligations, §5-107(a)
- §4.06 UCC: Nominated Person's Obligations
- §4.07 UCC: Disclaimers of Obligations, §§5-103(c)and 5-111(e)
- §4.08 UCC: Beneficiary's Warranties, §5-110(1)
- §4.09UCC: Fraud and Prehonor Relief from Fraud, §5-109
- §4.10 UCC: Posthonor Litigation
- §4.11 The Intersection of UCC Article 5 and UCC Article 9
Chapter 5. Uniform Customs and Practice for Documentary Credits (UCP 500)
- §5.01 UCP: What It Is and How It Applies; Article 1
- §5.02 UCP: Fundamentals; Articles 2–6
- §5.03 UCP: Notifications; Articles 7–12
- §5.04 UCP: Examination of Documents; Article 13—Standards for Examination of Documents
- §5.05 UCP: Notice of Dishonor; Article 14—Discrepant Documents and Notice
- §5.06 UCP: Examination Notice and Preclusion: UCP 500 vis-à-vis UCC Article 5 and the New ISP
- §5.07 UCP: Disclaimers; Articles 15–19
- §5.08 UCP: Documents; Articles 20–22
- §5.09 UCP: Expiry; Articles 42–45
- §5.10 UCP: Transferable Credit; Article 48
- §5.11 UCP: Assignment of Proceeds; Article 49
- §5.12 eUCP
- §5.13 International Standard Banking Practice (ISBP)
- §5.14 ICC Rules for Bank-to-Bank Reimbursements
Chapter 5A. UCP 600
- §5A.01 UCP 600
- §5A.02 UCP 600, General Provisions and Definitions, Articles 1–6
- §5A.03 Bank Undertakings and Notifications, Articles 7–16
- §5A.04 Original Documents, Article 17
- §5A.05 Extension of Expiry Last Date or Last Day for Presentation, Article 29
- §5A.06 Tolerance in Credit Amount, Quantity, and Unit Prices, Article 30
- §5A.07 Partial Drawings or Shipments, Article 31
- §5A.08 Installment Drawings or Shipments, Article 32
- §5A.09 Hours of Presentation, Article 33
- §5A.10 Disclaimer on Effectiveness of Documents, Article 34
- §5A.11 Disclaimer on Transmission and Translation, Article 35
- §5A.12 Force Majeure, Article 36
- §5A.13 Disclaimer for Acts of an Instructed Party, Article 37
- §5A.14 Transferable Credits, Article 38
- §5A.15 Assignment of Proceeds, Article 39
Chapter 6. The International Standby Practices 1998 (ISP98)
- §6.01 Introduction
- §6.02 Rule 1, General Provisions
- §6.03 Rule 2, Obligations
- §6.04 Rule 3, Presentation
- §6.05 Rule 4, Examination
- §6.06 Rule 5, Notice, Preclusion, and Disposition of Documents
- §6.07 Rule 6, Transfer, Assignment, and Transfer by Operation of Law
- §6.08 Rules 7 through 10, Miscellaneous Provisions
- §6.09 Standby User Checklist for ISP98
- §6.10 Conclusion
Chapter 7. Rules and Governmental Actions
- §7.01 Introduction
- §7.02 Legal Proceedings and Principles
- §7.03 Governmental Actions
- §7.04 UNCITRAL, URDG, and Other Rules
- §7.05 Arbitration and Letters of Credit
Chapter 8. Fraud and Injunctions
- §8.01 Overview
- §8.02 Old Colony Trust and Sztejn Cases
- §8.03 OldUCC Article5 Ambiguities
- §8.04 RevisedUCC Article 5 and Fraud
- §8.05 Illegality—Enron and the Mahonia Case
Chapter 9. Insolvency
- §9.01 Introduction
- §9.02 Terminology
- §9.03 Pertinent Provisions of the Bankruptcy Code
- §9.04 Letters of Credit and Bankruptcy
- §9.05 Letters of Credit: State Insolvency; Status of Foreign Insolvency Proceedings in U.S. Bankruptcy Court
- §9.06 Conclusion
Chapter 10. Subrogation, Setoff, and Marshaling
- §10.01 What Is Subrogation?
- §10.02 Subrogation and Letters of Credit: Examples Before Revised UCC Article 5
- §10.03 Subrogation Under UCC Revised Article 5
- §10.04 Subrogation and Letters of Credit: Bankruptcy Code
- §10.05 Setoff Under the Bankruptcy Code
- §10.06 Doctrine of Marshaling
Chapter 11. Basic Mechanics
- §11.01 The Players
- §11.02 How Letters of Credit Are Issued
- §11.03 Applicant; Examples
- §11.04 Issuer; Examples
- §11.05 Confirming Bank; Examples
- §11.06 Advising Bank; Examples
- §11.07 Nominated Bank; Examples
- §11.08 Beneficiary; Examples
- §11.09 Amending a Letter of Credit
- §11.10 How to Present for Payment
- §11.11 Expiry; Examples
- §11.12 Fees
- §11.13 Transmission of Data and Money
- §11.14 Electronic Issuance and Presentation
- §11.15 Internal Controls
Chapter 12. Reimbursement Agreements Annotated
- §12.01 Reimbursement Agreements
- §12.02 Examination of Documents: Bifurcated Standard
- §12.03 Waiving Liability of Issuer, Revised UCC Article §5-103(c)
- §12.04 Reimbursement Provisions
- §12.05 Choice of Rules—UCP or ISP? Exclusions to ISP Rules
- §12.06 Introduction to Annotated Forms
- §12.07 Commercial LOC Reimbursement and Security Agreement, with Annotations
- §12.08 Commercial LOC Application and Reimbursement Agreement, with Annotations
- §12.09 Reimbursement Agreement for Standby LOC Subject to the ISP
- §12.10 Unsecured Continuing Standby LOC Reimbursement Agreement: Good Example
Chapter 13. Standby Letters of Credit: Anatomy of Sample Forms
- §13.01 Using Chapters 13 and 14 Together
- §13.02 Clean LOC, Not an LOC, Standby LOC: Comparisons
- §13.03 Standby LOC: Application Form
- §13.04 Exclusions from UCP 500 and ISP98
- §13.05 Basic Form: Standby LOC
- §13.06 Extend Expiry or Pay for Evergreen Contracts
- §13.07 Standby LOC Form: Separately Confirmed Credit
- §13.08 Standby LOC Form: Amendment
- §13.09 Draft or Demand for Payment
- §13.10 Standby LOC Presentation Documents
- §13.11 Transfer Request for Standby LOC
- §13.12 Standby LOC Form: Assignment of Proceeds
- §13.13 Standby LOC Form: Release of Credit or Reduction of Amounts Available
- §13.14 Standby LOC Form: ForceMajeure Extending Expiry
- §13.15 Examples of Standby Credit Forms
Chapter 14. Standby Letters of Credit: Language and Procedures
- §14.01 Reconciling Contracts with Credits
- §14.02 Contract for Sale to Be Secured by Standby Letter of Credit
- §14.03 Issuer's Engagement to Pay
- §14.04 Nondocumentary, Extrinsic Conditions
- §14.05 Discrepancies: Standby LOC Examples
- §14.06 Use of the Word “Purported”
- §14.07 Drafts and Payment Demands
- §14.08 Statements of Nonperformance and Other Documents
Chapter 15. Illustrative Transactions
- §15.01 Illustrative Transactions: In General
- §15.02 Accounts Payable
- §15.03 Appeal and Supersedeas Bonds
- §15.04 Arbitration: Security for Award
- §15.05 Bid, Performance, and Advance Payment Security
- §15.06 Credit Rating Enhancement of Debt Securities
- §15.07 Installment Payments and Sales
- §15.08 Lease Rentals; Sale and Leaseback
- §15.09 Limited Partnerships, Installment Contributions
- §15.10 Loan Collateral
- §15.11 Oil Industry
- §15.12 Postcontract Addition of Security; Form
- §15.13 Promissory Notes
- §15.14 Reinsurance
- §15.15 Trade Accounts Receivable
- §15.16 United States Government Contracts and Transactions
- §15.17 State Contracts and Transactions
- §15.18 Real Estate Transactions
- §15.19 International Crisis Resolution Using a Standby LOC
- §15.20 Miscellaneous Uses of Standby Letters of Credit
Chapter 16. Forms, Procedures, and Checklists
- §16.01 Using Chapters 16 and 17 Together
- §16.02 ICC Standard Documentary Credit Forms
- §16.03 Commercial LOC Application Form
- §16.04 Basic Form: Commercial LOC
- §16.05 Commercial Letters of Credit in Action
- §16.06 Discrepant Documents and Waivers
- §16.07 Transfers, with Forms
- §16.08 Assignment of Proceeds: Form
- §16.09 Applicant's Checklist for LOCs
- §16.10 Beneficiary'sChecklist for LOCs
- §16.11 Administrative Procedures
Chapter 17. Commercial Letters of Credit: Presentation Documents
- §17.01 Introduction: Purposes and Scope of Chapter
- §17.02 Transport Documents: Definitions
- §17.03 UCP Transport Documents
- §17.04 UCP: Insurance Documents
- §17.05 UCP: Commercial Invoices and Other Documents; Articles 37–38
- §17.06 UCP 500: Allowances, Partial and Installment Shipments/Drawings; Articles 39–41
- §17.07 UCP 500's Words of Art: Articles 39, 46–47
- §17.08 UCC Article 7: Bills of Lading Provisions
- §17.09 Presentation Documents: Cases Illustrating Deficiencies
Chapter 18. Paying the Beneficiary: The Fundamental Principles of Letter of Credit Transactions
- §18.01 Paying the Beneficiary
- §18.02 Strict Compliance
- §18.03 Timely Presentation
- §18.04 Measuring Compliance
- §18.05 The Preclusion Rule
- §18.06 The Independence Principle
- §18.07 Fraud
- §18.08 Warranties and Other Postpayment Rights and Obligations
- §18.09 Conclusion
Table of Cases
Index
