Экзамен зачет учебный год 2023 / The independence principle of letters of credit and demand guarantees

damages undertaking, inadequacy 10.57 factors favouringgrant 10.32, 10.33 final accounting, availability 10.31 imminent expiry 10.27,10.28 international trade, risk to 10.60

beneficiary, restraining 10.18 fraud 10.19, 10.20 illegality 10.21

unconscionable conduct 10.22 cause ofaction 10.40,10.41

account party’s bank, against 10.42-10.48 paying bank, against 10.49-10.52

demand in breach 10.23

Australian approach 10.37, 10.38 balance ofconvenience 10.34—10.36

independence principle, and 10.01, 10.64, 10.65

independence principle, beneficiary, against 10.08-10.16

nullity or recklessness grounds 10.24 payment restraining 10.39

Seealso Freezing injunctions, Interim injunctions

between 2.52-2.56 correspondent bank, contract between 2.57-2.61

importer, contract between 2.48-2.51

Jurisdiction

applicable law 13.52,13.53 common law approach 13.55

Index

provision in non-Regulation State 13.20, 13.40 provision in Regulation State 13.21

provision in several Regulation States 13.26, 13.27

special jurisdiction 13.14, 13.15 choice of law rules 13.54 common lawregime 13.05,13.42

defendants domicile, place to sue 13.13 European regime 13.05-13.12 governing law

habitual residence 13.63, 13.64, 13.69 place contract closely concerned with

13.60, 13.61

letter ofcredit transaction 13.70, 13.76 reception of documents and making

payments 13.28

Rome Convention and Rome I Regulation 13.56 absence ofchoice 13.60-13.69

choice oflaw 13.57-13.59 URDG 758 13.03

Letters ofcredit

absolute payment 2.12-2.15 autonomous nature of 4.01 bank’s undertaking 2.01,2.02

bills of exchange, issued available as 2.22, 2.23 cash in hand, equivalence 1.02

choice oflaw 13.70, 13.76

account party and issuing bank 13.93, 13.94 beneficiary and issuing bank 13.76-13.85 beneficiary and negotiating bank 13.86 issuing and advising/confirming

banks 13.90-13.92 negotiating and issuing/confirming

banks 13.87-13.89 conditional payment 2.12-2.15

conflicting interests, balancing 1.03-1.05 contractual relationships underpinned by 2.44 demand guarantees, comparison with 3.09-3.15 European regime, place of payment

13.27-13.30,13.35 exporter, use by 1.01

financing instrument, function 2.09, 2.10 fraud protection

beneficiary’s certificate 5.123-5.126 clean letters 5.127

suicide’ instruments 5.127 functions of 2.06

illegality

closeness to 8.33-8.38 effect of 8.03,8.09

importer and exporter, contract between 2.45-2.47 importer and issuing bank, contract

between 2.48-2.51 importer, security and 1.01

independence principle, strict documentary compliance 4.40-4.48

risk reduction, function 2.07, 2.08 security, other obligations 2.11 transaction, stages 2.04, 2.05 types of 2.28

Maintenance or warranty guarantees, construction and supply contracts 3.3 l

Mareva injunctions See Freezing injunctions

Negotiation credits 2.37,2.38 beneficiary’s fraud, effect of 5.88-5-91

Nullity exception

bank, investigation dilemma 6.24, 6.25

chain contracts, unfair to beneficiary 6.26, 6.27 documents

bank security interest 6.30 fraudulent creation 6.03 forged documents

beneficiary, by 6.04 third parties 6.05-6.08

fraud, discouraging 6.31 honest error

beneficiary 6.10-6.12 third party 6.09

injunction 10.24

policy considerations 6.22 reasons against 6.23—6.27 reasons favouring 6.28-6.31 Singapore, approach in 6.13-6.19

honest error in document 6.21 UCP 60, 500 6.14,6.18,6.19 uncertainty, and 6.23

voidab initio 6.02

OHADA UniformAct on Securities 3.41, 3.42

Payment

abusive demand for 1.04 assurance of 1.02

Performance bond, liabilityassumed under 3.63 Performance bonds

account party claim against beneficiary 12.33

Furopean regime, place ofpayment 13.28, 13.32, 13.33, 13.39

fraud protection

bare demand payment 5.127 beneficiary’s certificate 5.123-5.126

illegality, Singaporean practice 8.52 issuer’s obligations 3.65

underlying international transaction 3.99 Performance guarantees 3.24, 3.25

Recklessness exception beneficiary, recklessness of 6.36 benefits of 6.38,6.39 definition 6.32

injunction 10.24 Singapore, in 6.33-6.35 third party documents 6.37 uncertainty, and 6.38

‘Red clause’ credits, bank undertaking under 2,40

Retention guarantees, interim payments 3.30 Revocable credits 2.29,2.30

Revolving credits, operation of 2.39 Risk, reduction 2.07, 2.08

Sanctions, illegality exception 8.04, 8.05 Sight credits 2.33

Standby credits 2.43 Straight credits 2.36,2.38

‘Suicide’ instruments, fraud protection 5.127 Summaryjudgment, illegality, defence 8.01 Suretyship guarantees

categorization

со-extensive liability 3.86, 3.87 conclusive evidence clause 3.83-3.85 contestation notwithstanding

undertaking 3.94

contract variation exclusion 3.89,3.90 damages payment undertaking 3.91,3.92 description 3.75, 3.76

guarantee subject to URDG 758 3.88 ‘if and when5payment undertaking 3.93 liability certificate 3.82

Marubeni presumption 3.95-3.98 payment on demand’ 3.77, 3.78 primary obligor clause 3.80,3.81 specific terms 3.74 unconditional undertaking 3.79

categorization problems 3.71-3.73 со-extensive liability 3.63

demand guarantees, differences between 3.61 demand, payment on 3.66

legal and equitable defences 3.65 primary liability, proofof 3.64 secondary liability assumed under 3.62 set-off 3.65

underlying transaction variation, effect of 3.68, 3.69

writing, requirement of 3.70 SWIFT 2.04

Syndication, demand guarantees 3.08

Transferable credits, UCP 600 2.41

UN Convention on Independent Guarantees and Standby Letters for Credit 3.39, 3.40

bad faith exception 7.63, 7.64 illegality exception, recognition 8.53

independence principle, recognition 4.09 non-genuine documents 6.20

Unconfirmed credits 2.32 Unconscionabilityexception

account party protection 7.01 Australia

case law 7.38,7.42-7.49 statutory provisions 7.39-7.41

case authorities, existence doubted in 7.27, 7.28 effect of 7.04

France, rights, abuse of 7.60-7.62 fraud, and 7.03

juristic basis for 7.02

Malaysia, recognition in 7.56-7.58 policy considerations 7.29-7.35 scope and limitation 7.10 Singapore

meaning of 7.52-7.54 proof, standard of 7.55 recognition in 7.50,7.51

supporting case authorities 7.17-7.26

TTl Case 7.06

good faith, lack of 7.07-7.15

UNCITRAL Convention, bad feith, and 7.63,7.64

United States, non-recognition of 7.59 Uniform Customs and Practice (UCP)

development of 2.16

effect and scope of 2.17,2.18 eUCP 2.19

UCP 600 2.16-2.20,2.27

deferred payment credits 5.99-5.108 independence principle, examination 4.38 independence principle recognition 4.09,4.10 nullity exception 6.19

Uniform Rules for Contract Guarantees (URCG) URCG 325, failure of 3.33, 3.34

URCG 458

development 3.34, 3.35 revision 3.36

URCG 758

independence principle, examination 4.38 independence principle recognition 4.09, 4.10 OHADA Uniform Act on Securities,

and 3.41,3.42 UCP 600, and 3.36-3.38

Uniform Rules for Demand Guarantees (URDG) 3.06

jurisdiction and applicable law 13.03