International Standby Practices ISP 98
International Standby Practices 98 is written exclusively for standbys. Developed by the Institute of International Banking Law and Practice, ISP98 is the standardized text for the use of standbys worldwide and offers a precise and detailed framework for practitioners dealing with standby letters of credit.
These uniform rules will reduce the cost and time of drafting, limit problems in handling and avoid countless disputes and unnecessary litigation that have resulted from the absence of internationally agreed rules on standby.
- contain precise definitions of key terms such as "original" and "automatic amendment"
- cover in detail the standby process from "Obligations" to "Syndication"
- provide neutral rules acceptable in most situations
- save both time and money in negotiating and drafting standby terms
- help avoid litigation and unexpected loss
- propose basic definitions should the standby involve presentation of documents by electronic means
- provide international standards for the use of this fast growing financial instrument