Part I Legal and Practical Challenges to Traditional Trade Finance, 5 Determining a Complying Presentation in Letter of Credit Transactions: A Principled Appraisal of Current Requirements and Challenges

This chapter explores frequently neglected aspects of the vexed question of complying presentation in letter of credits operations from the perspective of Anglo-American law and a pragmatic appreciation of the International Chamber of Commerce’s codes of banking practice. In particular, it considers the existence and extent of the classes of ICC print material permissible as an aid in ascertaining the proper legal meaning and effect of a clause in the UCP 600 that lacks sufficient clarity, or even worse, if the UCP clause in dispute makes no express provision on the point at issue. The discussion then evaluates the nature of a clause in a credit calling for a draft drawn on the applicant; the legal effect of an unstipulated document in a presentation under the credit; and the rights of the beneficiary when determining the bank to which to tender documents for payment.