Expired Letters of Credit When Banks Shut Down Due to Force Majeure: To Pay or to Refuse? An Analysis of Article 36 UCP 600 from a Real-Life Disaster Mr. Old Man _____ In international trade, the letter of credit (L/C) is often regarded as the “backbone” of transactions because of its ability to safeguard the interests of both the seller and the issuing bank. However, in practice, things do not always run smoothly. When the issuing bank … Read More
A CASE OF FORCE MAJEURE QUESTION Dear Mr. Old Man, We hope my email finds you well. I need your assistance. If the issuing bank closed for the causes mentioned in article 36 but LC was available and expired at the counter of the beneficiary’s bank’s country, and that bank honored or negotiated complying documents, can the issuing bank honor these documents irrespective of that … Read More