Documentary Credit World November/December, 2019

Feature - New York Court Addresses Defenses and Claims Regarding Several Standby LCs

A set of recent New York state court decisions addressed fraud defenses raised by the applicant and issuer against 11 LC beneficiaries. In his commentary on the cases, James G. Barnes examines the court’s application of specific sections of New York’s adoption of Uniform Commercial Code (NYUCC) Article 5 (Letters of Credit) including those pertaining to issuer’s rights and obligations (5-108), fraud (5-109), and remedies (5-111). The commentary is partially in response to the court’s decision to incorporate its summary disposition of applicant and issuer claims against all 11 beneficiaries to that of its separate summary disposition of wrongful dishonor claims brought by certain beneficiaries against the issuer. Following Barnes’ commentary are summaries of two of the court decisions.


  • Algerian Import Policies Raising Concerns
  • LC Implications of Bank Office Closure or Relocation
  • China Construction Bank Amps Up Its Blockchain Trade Platform
  • HSBC Takes First Step in Advancing Trade Finance APIs
  • Trade Technologies Completes Digital LC Presentations in Europe
  • India Releases Report on Fintech-Related Issues
  • Correction: eB/Ls
  • Ocean Shippers Pursuing Non-Bank Alternatives for Financing
  • Deutsche Bank Severs Correspondent Banking Relationships in Malta, Lithuania
  • LC-Related FDIC Statement of Policy Rescinded
  • Lorenzo Retires
  • Austrian Bank Loses Banking License
  • Technology Update
  • International Updates
  • Ricci Retires


“Comparing Receivables Purchase with Documentary Credit Financing” by YAP Tat Yeen

“The Reasons and Rationale for Producing the BAFT Guidance Paper for Automatic Extensions” by Kristine SIEBEL and Mary Ann MCCARTY

“Incoterms 2020 & Letters of Credits – A New FCA Option” by Pavel ANDRLE

“Preclusion Under ICC Rules: A Chinese Perspective” by HEI Zuqing

Conference Reports

■ 2019 Americas Standby & Guarantee Forum

■ 2019 Americas LC Law Summit

3rd Quarter 2019 - US Branches of Non-US Banks. Where does your bank rank? See the full statistics in the Nov/Dec issue of DCW.

Litigation Digest

Yuchai Dongte Special Purpose Automobile Co. v. Suisse Credit Capital (2009) Ltd.

Topics: Agency; Nominated Bank; SWIFT MT700; UCP600 Article 1 (Application of UCP); UCP600.

Mamancochet Mining Ltd. v. Aegis Managing Agency Ltd.

Topics: Assignment; Blocking Regulation; Insurance Policy; JCPOA; Licenses; OFAC; Sanctions; Sanctions Clause.