NovDec 2009 DCW Issue.pmd - The Institute of International ...

ICC OPINIONSQ4: re UCP600 Article 14(f) and 14(k)• Exclusion of UCP600Article 14(f) without providing alternative provisions as to how otherdocuments should be examined leaves bank without direction as to standard of compliance. Whilethe Opinion clearly attempts to discourage the exclusion of the rule, the standard in such a situationwould be that documents not addressed by the credit or the rules would comply as long as theyappeared to be the required document. Such a provision would provide less protection to theapplicant than would the UCP rule being excluded.• Exclusion of UCP600 Article 14(k) signifies that the beneficiary must be indicated as the shipperor consignor on a transport document.Q5: re UCP600 Article 10(c)• Suggesting that the terms of UCP600 Article 10(c) address the issue where the presentation isambiguous. Comment: It is unclear how the text of UCP600Article 10(c) addresses an ambiguouspresentation other than to suggest that it is to be deemed to have accepted the amendment.• Where presentation is not impacted by amendment that has not been accepted, beneficiary hasnot accepted amendment. This Opinion significantly qualifies the express text of UCP600 Article 10(c)but is the correct interpretation since a credit cannot be amended without beneficiary consent whichcan only be implied from the unambiguous conduct of the beneficiary.Observations:Deletion of UCP600 Article 14(L). UCP600 Article 14(L) (Standard for Examination of Documents)is, to say the least, an odd provision. It was intended to silence the freight forwarders who long andlobbied for a provision akin to the sanction of a FIATA transport document in the manner providedby UCP400. Instead, UCP600 Article 14(L) provides that anyone can act as an agent for the carrierprovided that the transport document otherwise complies with the terms of the relevant UCP600transport document article which, among other things would require disclosure of the agency statusof the agent and of the name of the principal/carrier.Since this result would obtain whether or not UCP600 contained Subarticle 14(L), some LCspecialists worry that there is something more at work than a surplus article that clarifies thatanyone including a freight forwarder can act as a disclosed agent in connection with the issuance ofa UCP600 transport document. Of perhaps they worry that freight forwarders will make the claimthat their rights and cause have been vindicated. In any event, there have been reports of thedeletion of this subarticle and they have reached the ICC Banking Commission by way of an inquiry.November/December 2009 ■ Documentary Credit World 33

INDEXChina (Guarantees Practice)S30China Everbright Bank v.Nanning Qnbi Chngpn Land Dev. Co. S11 (sum)China Everbright Bank v.Tangshan Huida Int’l TradeMar19 (sum)Chinese RMB Currency LCsS8, O5Chinese LC RulesFeb22, Mar23Choice of LawS33CitiND9Clawback ClausesJun17Clough Engineering Ltd. v.Oil and Natural Gas Corp.Apr26 (sum), S31Coastline SolutionsJun19, S27CofaceND8Collateral (LCs as)JuAu6COLLIER, PaulND10Colorable BasisO14Commercial FraudJan14, Feb22,36,Apr17Commercial LCsFeb22Commercial InvoiceO29Commercial Paper (Standby LCs for) S4Commercial Standby LCsJun22Committee on Financial Services(US House)Feb37Common Law FraudJun10ComplianceFeb22, Mar25,Jun16,20, S14Compulsory AcquisitionMar6ConfidentialityMay11ConfirmationJun31Confirmed LCsJan5, Feb6, Apr36,Jun4, S3Confirming BankMay10,25ConflictMay31ConstructionApr26Contract to Issue LCJan11,12, Jun26Contracts for LCsJan12Contractual Negative Stipulation Apr26ConversionMar19Corporate LC UsageFeb22, May3Correction of DocumentsMay26COTTI, DanielS5Counterparties (LC)May20CounterguarantiesMar4Covered LCsND12Cowealth Medical Science v.World Capital PacificS28Court RehearingS14Credit EnhancementS5Crédit Industriel et Commercial v.China Merchants BankJan18Credit Rating Language (in LCs) Jun17Credit RiskMay21Criminal FraudFeb22, Mar26Cross-Border TradeMay3CULLEN, LeoJun19CureMar19Currency (HK-China)May3CustomJuAu15–D–DamagesMar11, May11DateS14DAVIDSON, AlanApr26, JuAu4, 26 (asauthor), ND6, 22 (asauthor)DBSJan4DBS Bank v. Carrier SingaporeJun10 (sum), S32DeceitJun10, S32Deferred Payment Undertaking S20Demand Jun5, S14,20Demand Content (URDG)S22Description of GoodsJun25, S14DHLFeb8DiscrepanciesJan20, May22, Jun25,S14, ND15Discrepancy FeesApr36Disposition of the Documents Mar11DOCDEX Decision No. 271May27Document OwnershipJan20Documentary CreditsFeb22Documents, Falsification ofMay3DraftsS7DrawingMar4, May27Drawing (Alleged Improper)May4Dubai International FinancialCentre (DIFC)ND10–E–Economic CrisisFeb22, JuAu3EndorsementO28Energy Derivatives (OTC)JuAu5EnglandFeb17, Apr17, May7English LawO16Environmental & SocialReputation PoliciesS25ePresentationS6eUCPS6Equitable EstoppelS14European Bank for Reconstruction& Development (EBRD)May6Evergreen ClausesJun29, JuAu14, S32EVERHARDT, NelsonJun16Exclusion Clauses (UCP600)May29, S25, ND33Exculpation ClausesMay11ExpirationMar19, ND15Expiration Date ClausesJun18Export Development Canada Jan3Extend or Pay (URDG)S22ExtensionS20Extra DocumentsS25Extra Information (Issuer Requires) O8–F–False CertificationND4Falsified B/LsMay3Fashion Shop v. Virtual Sales Group S27Federal Deposit InsuranceCorp. (US FDIC)May45, Jun29, S6Federal Home Loan Banks (US FHLBs) Jan6FinalityJun10ForfaitingJun 20, JuAu3November/December 2009 ■ Documentary Credit World 57

INDEXForged LCForgeryFormFoster Poultry Farms v. Suntrust Bank“Four-Party LC Transaction”FraudFraud, Common LawFraud ExceptionFraud (in the Transaction)Fraudulent B/Ls–G–GarnishmentGlobal Financial CrisisGolden West Ref. Co. v. SunTrust BankGoods DescriptionGood FaithGREAVES, PaulaGuaranteesGuarantees (Clauses)Guarantees (India)Guarantees, IndependentGuetzko v. KeyBank–H–Heilbron, RichardHISERT, GeorgeHoliday Isle v. Clarion Mortgage CapitalHong KongHonorHonor (LCs of Failed Banks)HSBCHSBC Global Research–I–ICBCICCICC Banking CommissionICC Banking Commission OpinionsICC Global SurveyICC Opinion TA638revICC Opinion TA644revICC Opinion TA658ICC Opinion TA662revICC Opinion TA666revICC Opinion TA668revICC Opinion TA671ICC Opinion TA672revICC Opinion TA674revICC Opinion TA675revICC Opinion TA677revICC Opinion TA681revICC Opinion TA683ICC Opinion TA686revIFSAIIBLPIIBLP Americas Advisory CouncilIIBLP Asia Advisory CouncilMar21O7Jan14May11 (sum)Feb11, Jun26, ND4Apr13, May16,Jun22, JuAu15,O16Jun10ND22O14Jun6Mar9Jan3, Feb22, Mar3,May45, Jun3,15ND15 (sum)Jun25ND5Jun8Feb17, 22, May27Apr6Mar9Feb22; Mar4,JuAu18Jun23Jun5JuAu13Mar21 (sum)Feb3, JuAu3, O8O16May45Jan3, Mar6, Apr7JuAu3O5Apr5, Jun15,JuAu3Feb22, Jun3, ND3Mar19, Jun3, O28S26ND32Feb22, May23, S33May26S29S29S29Apr3May25S20S26May26JuAu22, S26S29S26ND3Feb22,36Mar4, O8Apr6, O8IIBLP Middle East Advisory Council Mar3, May3IIG Capital v. Van Der MerweFeb17 (sum), S30IllegalityApr18Impex Int’l Corp. v. HSBC Bank Jun26Improper ClaimsFeb22Incorrect LC NumberMay26Increased DemandJan5Incurable DefectsMar11IndependenceFeb22, JuAu18,JuAu26Independence (Exception to)S31Independence PrincipleFeb11IndependentFeb17Independent Guarantee Issuance S29Independent GuaranteesFeb22, JuAu18, O16Independent UndertakingsJan14Independent v. DependentFeb22, S30IndiaJan6, Mar9, Jun7,O5,7, ND8,10IndonesiaJan7, Feb6, Feb8,Apr7, JuAu7, ND8,10InjunctionFeb4, Apr13,20,May16,25, Jun22,JuAu15,18, O3Injunction (and Refusal Notice) O29Inoperative CreditsJun31Institute Clauses (Insurance Coverage) Feb7Insurance DocumentsFeb7, O28International Forfaiting Assoc. (IFA) JuAu3IranJun6, O4,7, ND9,49IraqJan13, Jun7Irreparable HarmJuAu15Irrevocable Trust v. HuntingtonNational BankS28ISBPJan23ISBP (UCP600) Paragraph 47O30Islamic BankingMay6ISP98Feb22, Apr4ISP98 Rule 4.20S3ISP Form 1-1 (Long Straight Standby) O22ISP Form 2-1 (Short Straight Standby) O26ISP Model Forms ProjectS32, O22IssuanceJan9IssuerJun31Issuing Banks (ICC Opinion Impact) JuAu23–J–Jaffe v. Bank of America Apr13 (sum), S28,31JapanMar7JIA HaoO28 (as author)JIN Saibo Mar19, JuAu4, S11,30Joseph Stephens & Co. v. Cikanek Jun28JurisdictionMar21JurisprudenceApr20–K–Karya Lagenda Sdn Bhd v.Kejuteraan Bintai KindenkoSdn BhdJuAu18 (sum)KELLY-LOUW, MichelleND8K.G. Cornwall v. Beazer Homes Corp. Jan12 (sum)Knowledge of DefectsMar1158 Documentary Credit World ■ November/December 2009

INDEXKoreaKorea Exchange Bank (US)KRALIJEVIC, MarkoKuwait–L–Labarge Pipe & Steel v. First BankLAMY, PascalLandlords, CommercialLataviaLC DisclaimersLC FeesLC FraudLC IssuanceLC Issuance (Strange Deals)LC Law (2008 Overview)LC LitigationLC Not ContractLC Practice (2008 Overview)LC PricingLC ProceedsLC SettlementsLC Text (Example)LC UsageLC Usage (by Manufacturers)LC Usage (Iran)LC Usage (Russia)LC UsesLC ValidityLCsLCs (Alternative to)LCs (Bond Market)LCs (Guarantee of)Leighton Contractors (Sing.) Ltd. v.J-Power Systems Corp.Lenox Hill Hospital v. AIGLi & FungLIANG JiangLiquidityLots–M–MacauMADOFF, BernardMalaysiaMAULELLA, VincentMerchandise DescriptionsMexico (LC Law)MILLARD, Neal S.MisrepresentationMisysMIT CredocMoore Stephens v. Stone & RollsMunicipal Bonds (Impact on LCs)JuAu35Feb6S5ND8Mar11 (sum),Jun27May4May45JuAu8S6Jan4, Jun4, JuAu7,S4Feb22, Mar26,Apr20, May3,28,Jun10, O7JuAu4, O6May21Mar23Mar24Mar11Feb23Apr4O5S3Jan29, Mar39,May9, O32Feb22, Mar3,Apr36, JuAu3,7,O5Feb4ND49ND6Jan5, JuAu6, O6S11Jan3Feb22, ND9S5ND7Apr22 (text)Jun22, O14 (sum)Feb3Mar19, S11Mar3, JuAu61Apr3Jun7Feb36Feb8, May16,JuAu9,18, ND11Apr36, Jun31Jun26Mar24S5Mar11Jan7Apr7, ND9Apr17 (sum)Mar5Mythical Discrepancies–N–NamibiaNareerux Import Co. Ltd. v. CIBCNational Bank of Abu Dhabi (NBAD)Negligent MisrepresentationNegotiating BankNegotiation Agreement (Start of)NegotiationNigeriaNigeria Oil LCsNissho Iwai Europe PLC v.Korea First BankNOAH, DennisNominated BankNominated Negotiating BankNon-Bank IssuanceNon-Documentary ConditionsNon-Operative LCNotice (Impact of Injunction)Notice of DishonorNotice of RefusalNotice of Refusal (Legal Nature of)Notification (URDG)NOWICKI, WilliamNucleus Software Exports–O–OCBC BankOffice of the Comptrollerof the Currency (US OCC)Office of Foreign Assets Control(US OFAC)Office of the Superintendent ofFinancial Institutions (OSFI)Old Republic Surety Company v.Quad City Bank & Trust Co.Oil LCsOlex Focas Pty Ltd v. Skodaexport Co LtdOPEC Fund for InternationalDevelopment (OFID)Open AccountOperational RiskOpinions (ICC Banking Commission)Original LCORITI, AnthonyOrrick, Herrington, & Sutcliffe LLP–P–PAE, Yorng-WonPakistanPartial PaymentsPartial Shipment (Prohibition of)PatentPerformance GuaranteePermanent Trustee Co. v.Gulf Import and ExportPerpetual LCsPhiladelphia Gear Corp. v. Central BankPhilippinesPigott v. Sanibel DevelopmentMay22Feb8ND5JuAu8Jun10S29Jun29Jun6Feb7, ND11Mar5JuAu35Jun8May25, O8JuAu11, O8Mar21Feb22Jan11O29ND15Jan18Jan21S22Mar6JuAu8JuAu8, S8Feb22Jun21, O4JuAu6JuAu14Jun18, ND8ND5ND9Jun15, O5, ND8May21, Jun16Feb22Mar11, May23,Jun27Jun5S5JuAu35 (as author)JuAu9, O7May21Apr3Jun6Apr26Jan14 (sum)Feb22, ND15Jun28Mar6,7, JuAu9, S8Apr18November/December 2009 ■ Documentary Credit World 59

INDEXPolitically opposed persons(Sanctions Impact of)PreclusionPreprinted Clause (B/L)PresentationPresentation (Electronic)Presentation (UnderTransferred Credit)Presenting BankPrice Fluctuation ClausesProbability of SuccessPublic Interests–R–Rabobank v Bank of ChinaRe-acceptanceReal Estate (Financing LCs For)Reasonable TimeReceivershipRefund GuaranteeRefusalS27Mar11, ND15JuAu22ND33S6Apr10May10Jun18JuAu15JuAu15Jan19S21Apr18Mar19Jun29O16Jan18, Mar11,Jun28Regulation (LC Related)Mar24, Jun14Regulatory Reform (US)Feb36RelianceMar11ReimbursementS11Reimbursement (Right to)JuAu11RemediesND15Replacement DocumentMay26Reserve Bank of IndiaJan6,9Rev. UCC § 5-109JuAu15, O14Rev. UCC § 5-109(b)(4)O14”Revolved” and “Reinstated” JuAu35REYNOLDS, FrankFeb7Rice Corp. v. Grain Board of Iraq Jan13 (sum)RussiaJan3, Feb8,Mar7, May7,JuAu9,33,ND6,11,12Russian LawS3–S–Sadacharamani Govindasamy v.G. Narayanan Panniker May16 (sum),Jun24SanctionsSanctions ClausesSaudi ArabiaSecurity Interest in Bank AccountScamsScopeSea Emerald SA v. ProminvestbankSerbiaSHALASHNIKOVA, TatianaSHAW, JeremySHAW, MartinND9,49Feb22, May22,Jun20, S6Mar3, JuAu9, O6Jun28Jan42, Feb22,36,42,Mar26,43, Apr41,May39, Jun38,JuAu51, S41, O40,ND51Feb11O16 (sum)Jan7JuAu33 (as author)Mar3S22 (as author)Shinhan BankJan7Shipping Industry (LC Impact for) JuAu5SignatureO30Singing (of Transport Doc)ND32Silent ConfirmationJun31, S26SingaporeJan4, Apr7,20,22,May6, Jun10,JuAu61, O8SMITH, DonJun20South AfricaMay6South KoreaJan5,7, Feb6, Apr7Sovereign ImmunityJan13Specific PerformanceND15Sri LankaJun7Standard Chartered BankJan4, May5, Jun6,ND9Standard Practice ofFinancial InstitutionsND15Standby LCsJan9, Feb22, May27,S6,7Standby LCs (Clauses)Apr6Standby Payments(Short Time Limits for)Jun17State Bank of IndiaND10StatisticsFeb22, ND6Statistics, LC Case TrendsMar29Statistics, Non-US BanksJan32, Apr33,JuAu41, ND45Statistics, US BanksFeb31, May33, S9,35,ND39Statistics, US Savings Institutions Jan36, Mar32,JuAu45, O34Statute of LimitationsFeb11, Jun25, ND4Statute of Limitations (India)Mar9Strict ComplianceMar11, S14Structured Trade FinanceMay5Summit Resource Group v. JLM Chemicals Jun22, JuAu15 (sum.)SunTrust BankND9Supersedeas BondsJuAu14SuretyshipFeb17Suretyship Undertakings (US Banks) Feb22SWIFTFeb5, Jun15,19,JuAu62SWIFT Field 49Jun31SWIFT Trade Services Utility (TSU) S27Syndicated LCMay11–T–TajikstanND11TAYLOR, DanJun8,15Terms (Credit Rating Clauses in LCs) Apr6ThailandJuAu9, O3, ND11Third Person PhenomenonS28TimelinessMar11To OrderO28TradebeamJuAu8Trade Finance (Future of)Apr4Trade Finance ProductsMay6Trade Finance Survey (ICC)Jun15Trade Finance Trends Jun3,15, S4,2660 Documentary Credit World ■ November/December 2009

INDEXTrade Finance Trends (Russia)Trade Market Review (SWIFT)Trade Practices Act 1974(Contravention of)TransferTransferable LCTransferring Bank (Actions of)Transport DocumentsTurkeyTyco Electronics–U–UCPUCP400UCP400 Article 16(d)UCP500UCP500 Article 13(a)UCP500 Article 14UCP500 Article 14(b)UCP500 Article 14(d)UCP500 Article 39(b)UCP600UCP600 Article 10(c)UCP600 Article 12(a)UCP600 Article 14(d)UCP600 Article 14(f)UCP600 Article 14(h)UCP600 Article 14(j)UCP600 Article 14(k)UCP600 Article 14(L)UCP600 Article 16(b)(iii)(b)UCP600 Article 16(c)(iii)UCP600 Article 16(c)(iii)(b)UCP600 Article 16(d)UCP600 Article 20UCP600 Article 28(h)UCP600 Article 28(i)UCP600 Article 31UCP600 Article 36UCP600 Article 38(j)UCP600 (Russian Translation of)UkraineUltra ViresUN Convention for Carriageof Goods at SeaUN LC ConventionND6Feb5Apr26Apr10, May28Mar9, S3Apr10May29, O30Jun6May4Mar11Jun27Mar11ND15Jan23, S14Mar19, Apr13S14Jan19Jun26Jan25, Feb22,May29, Jun3, S20,29, ND32ND33Jun31, O29Feb22, May23, S33ND33Feb22, May23S3, O31ND33ND32Jan25Jan25, ND32May10ND32JuAu22ND32ND32Apr3May31Apr10JuAu33Feb9, Apr8O16Apr5Feb22, Mar22,JuAu13,26, O4,ND3,22,36UN LC Convention Article 19UN LC Convention Article 20Unconditional Bank GuaranteeUnconscionabilityUnconscionable ConductUncovered LCsUndervaluationUniform Law Conference (ULC)Uniloy Milacron v. PNC BankUnited KingdomUnited Arab EmiratesUnsafe Ship Loading PracticesURDG 458URDG 458 Article 17URDG 458 Article 20URDG 458 Article 26URDG 458 (Revision of)URDG 758URRUS 15 USC §1701US Ex-Im BankUS Revised UCC Article 5US Rev. UCC § 5-103US Rev. UCC § 5-106US Rev. UCC § 5-106(c)US Rev. UCC § 5-106(d)US Rev. UCC § 5-108(a)US Rev. UCC § 5-108(b)US Rev. UCC § 5-108(c)US Rev. UCC § 5-108(d)US Rev. UCC § 5-109US Rev. UCC § 5-110US Rev. UCC § 5-111US Rev. UCC § 5-115US Rev. UCC § 5-116(c)–V–VietnamVoest-Alpine Trading v Bank of China–W–WaiverWarrantyWILLS, JimWithout DelayWorld Trade OrganizationWrongful Dishonor–Z–ZHANG, NingningND22ND22JuAu18Apr20,22, S31, ND5Apr26ND12Mar6JuAu13, O4Jun25, S14(sum),28,32ND7Mar3, Apr8Jan4S22S22S22S22Feb22, Jun20, S31ND3Feb22Apr18Jan5, Feb6Feb22, Mar23,May28, Jun22Feb11Feb22ND15ND15Mar11Mar11, ND15ND15ND15Apr13,18Feb11, ND4Mar11, ND15Feb11, Jun26Mar11Jan7, JuAu7Jan23Jan20, ND15Feb11, Jun10, ND4Jun15Mar11May4, S4Mar11,19, S14, ND15Jan18November/December 2009 ■ Documentary Credit World 61