The difference between an LC and suretyship undertaking; Can one ...

LC Law Summit NY 22 October 2010
9 – 9:45 Non Extension Notices: Form, Procedure, & Standard of Adequacy
Bank of Nova Scotia v. Williamson, [2009] ONCA 754 (Ont. C.A. Nov. 2 2009) [Can.]; Board of
Supervisers of Fairfax Cty, Va v. Burke & Herbert B&T Co.; Fifth Third Bank v. Kohl’s Ind. L.P.; Old
Republic Surety Co. v. Quad City Bank &Trust; International-Matex Tank Terminals v. Chemical
Bank, 2010 WL 2219366 (W.D.Mich. Oct.5, 2009); and ISP98 Model Form 3. Should there be a
Model Form
9:45 – 10:30 Canadian, US, and Other LC Cases of Note Part I
The difference between an LC and suretyship undertaking; Can one claim the entire
amount of the LC as Damages Highland Produce Ltd. v. Egg Farmers of Canada,
[2010] F.C. 401 [Canada].
Malpractice Claim against Beneficiary/Debtor’s General Counsel for Advice (or lack)
regarding Drawing under Performance Standby. In re Central Illinois, 2010 Bankr.
LEXIS 1814 (C.D. Ill. June 16 2010)
The ability of an LC issuer to take a security interest in the goods financed by the LC and
exercise it while refusing payment on the LC: Nareerux Import Co. v. Canadian Imperial Bank of
Commerce, [2009] ONCA 764 [Canada] compared to SewChez Int’l Ltd v. CIT Group.
Universal Stainless Steel & Alloys Inc. v. J.P. Morgan Chase Bank, [2009] CarswellOnt 7015,
ONCA 801 (Can.) [Canada].
Breach of a sales contract to provide an LC: What if the Beneficiary fails to make a complying
presentation Seattle Iron & Metals Corp, v. Xie, 2010 WL 1875390 (Wash. Ct. App. May 10
2010); Adani Exports Limited v. AMCI Export Corp., 2007 U.S. Dist. LEXIS 88969 (W.D. Pa.
Dec. 4, 2007); UCC Section 2-325.
An Injunction to Prevent Disbursal of the Proceeds of Fraud and an LC Obligation: Eam Land
Services, Inc. v. Ideal Mortgage Bankers, Ltd, 2010 WL 237906.
10:30 – 11 BREAK
11-12:30 LC Cases Part II
Structured LCs and their fallout: Cargill Financial Services International v. Bank of Finance and
Credit Ltd., 14 N.Y.3d 853 (N.Y. App. Div. 2010); Fortis Bank v. Adib Bank, Index No.
601948109 (N.Y. Sup. Ct.).
Disclosure of confidential information in a participation/syndication: Foster Poultry Farms, Inc.
v. Sun Trust Bank, 2010 WL 1735035 (9 th Cir. Mar. 19, 2010).

The Phenomenon of Fraudulent LCs: Hansen v. PT Bank Negara Indonesia (Persero) TBK,
601 F.3d 1059 (10th Cir. 2010).
Arbitration in the Underlying Contract and its Impact on LC Obligations: BHP Billiton Petroleum
(Americas) Inc. v. Atlanta Offshore Ltd., 312 S.W.3d 813 (Tex. App. 2009).
Recent Chinese LC & Guarantee Cases
12:30 – 1:15 LUNCH
1:15 – 1:45 LC Proceeds Where the Applicant, Beneficiary, or Both are Not Counter‐Parties
167086 Canada Inc. v. GMAC Commercial Finance Corp., [2009] O.J. 1986 QUICKLAW (O.S.C.J. May 14,
2009) [Canada]; Arthur Schuman, Inc. v. Banco Santander Brasil, 2010 WL 891647 (D.N.J. Mar. 10,
2010).
1:45 – 2:15 Suretyship Discharge Defenses as Post‐Honor Claims
CRM Collateral II Inc. v. Tri‐County Metropolitan Transportation District of Oregon, 2010 WL 2175994 (D.
Or. May 26 2010).
2:15 – 2:45 Nominated Bank Reimbursement Rights Under UCP600: The Saga of China New Era
China New Era Int’l Ltd. v. Bank of China (H.K.) Ltd., [2009] HKCU 2012 (Hong Kong Court of
First Instance) [Hong Kong] and its reversal by the Hong Kong Court of Appeal on 22 July 2010; Fortis
Bank v. Indian Overseas Bank, [2010] EWHC 84 (Comm) [England].
2:45 – 3 BREAK
3 – 3:30 Replacing Standbys or Demand Guarantees Which Have Expired or are to be Issued by
Another Issuer
3:30 – 4 Limitations and Expiration: Statutes & Rules
Alhadeff v. Meridan on Baintree Island, LLC, 220 P.3d 1214 (2009) [USA]; Bank of Nova Scotia v.
Williamson, [2009] ONCA 754 (Ont. C.A. Nov. 2 2009) [Can.]; MBF Insurans Sdn Bhd v. Lembaga
Penyatuan & Pemulihan Tanah Persekutuan, [2007] MLJU 0625 (Ct. App. Putrajaya) [Malaysia]; Bank
of China, Ltd. V. C.G.S. (Group) Pty. Ltd, [2009] NSWSC 397[Australia]; Rev. UCC Section 5-115;
Section 15 of the Canadian Limitations Act [2002].
4 – 4:30 Open Forum
4:30 COCKTAIL RECEPTION