The ICC Publication of International Standard Banking Practice (ISBP) And the Probable Effect on United States Letter of Credit Law

Section II of this Comment will provide a brief explanation of what an LC is and how it functions. Section III begins with a description of the development of conflicting standards among United States courts for determining compliance with LC terms. Section III further provides a summary of the current standards for compliance under the UCC and the UCP 500, with an emphasis on the effort to standardize the documentary compliance standards required by these publications on a flexible strict compliance standard. Section IV of this Comment provides an explanation of the ISBP and analyzes how it will function as the latest step toward securing greater consistency among courts and banks in determining documentary compliance. This Comment concludes that the ISBP will be highly persuasive on United States courts and will more firmly establish the flexible strict compliance standard in LC jurisprudence

The ICC Publication of International Standard Banking Practice (ISBP) And the Probable Effect on United States Letter of Credit Law

Section II of this Comment will provide a brief explanation of what an LC is and how it functions. Section III begins with a description of the development of conflicting standards among United States courts for determining compliance with LC terms. Section III further provides a summary of the current standards for compliance under the UCC and the UCP 500, with an emphasis on the effort to standardize the documentary compliance standards required by these publications on a flexible strict compliance standard. Section IV of this Comment provides an explanation of the ISBP and analyzes how it will function as the latest step toward securing greater consistency among courts and banks in determining documentary compliance. This Comment concludes that the ISBP will be highly persuasive on United States courts and will more firmly establish the flexible strict compliance standard in LC jurisprudence