About the Course:
For the past decade, over $1 trillion of international trade has been paid annually through commercial Letters of Credit. Letters of Credit are used in transactions ranging from surety bonds to government contracts; from industrial revenue bonds to power plant construction; and from bank guarantees to executive compensation.
Letters of Credit carry many benefits including pay now, litigate later; difficulty in enjoining draws; instant liquidity; documentary safeguards; and, most costs. However, there are numerous risks associated with Letters of Credit. Namely, set aside of credit lines; high discrepancy rates; expiration; complex rules; and, the risk of fraud.
The following are among the issues discussed during this session:
- What are the risks associated with "suicide Letters of Credit"?
- How should choice of law and choice of venue be negotiated in Letters of Credit?
- What steps can you take to avoid becoming a victim of Letters of Credit fraud?
- Do Chinese banks allow Letters of Credit to be confirmed? What are the related concerns?
- What is the significance of Standby Letters of Credit?
- What is the importance of automatic renewals?
- Can amendments be made to Letters of Credit? Can discrepancies be waived?
- Who pays legal fees associated with disputes arising from Letters of Credit?
- Are Letters of Credit transferable?
- What do you need to know about supersedeas Letters of Credit?
- What is the significance of Letters of Credit being deemed preference proof in bankruptcy?
- What are fronting arrangements in connection with Letters of Credit?
Course Leader: Carter Klein, Partner, Jenner & Block LLP
Carter Klein is a partner at Jenner & Block LLP where he has practiced for the past 39 years in the areas of financial services, Uniform Commercial Code, credit enhancements and commercial law. He is co-author of West's Uniform Laws Annotated - Uniform Commercial Code Forms and Materials; West's Illinois Practice - Uniform Commercial Code Forms Annotated; and West/Thompson Illinois Code Comments. He is current Chair of the ABA's UCC Payments Subcommittee and past Chair of the ABA's UCC Letter of Credit Subcommittee; he is past chair or co-chair of Chicago Bar Association's Commercial and Financial Transactions Committee; International Law Committee and Consumer Credit Committee. He is an editorial advisor for Documentary Credit World; is a member of the American College of Commercial Finance Lawyers; is the liaison for the UCC Committee of the Business Law Section of the American Bar Association to the Permanent Editorial Board of the Uniform Commercial Code; and is a member of the Banking Committee for the U.S. Council on International Business. He participated in the drafting of the International Standby Practices (1998) and Revised Article 5 of the Uniform Commercial Code and has authored numerous articles and lectured frequently on Uniform Commercial Code topics.
Course Length: Approx. 1.5 hours
$295 PER USER
Option: A quiz is offered for an additional $39. This quiz is delivered in true/false and multiple choice format. Certificates of Achievement in Negotiating the Ownership Structure of Emerging Companies will be furnished to those that score 70% and above.
Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at firstname.lastname@example.org.