(LAWB-4011) - 2 UNITS

This course primarily focuses on the importance of letters of credit in domestic and international transactions. Hundreds of millions of dollars worth of commercial and standby letters of credit are issued each year by U.S. banks. These credits are used to pay for goods in sales transactions; act as credit enhancement devices in loan transactions; and substitute for performance bonds. Despite their frequency of use and utility, few lawyers and judges know much about them. This seminar will study UCC Article 5, the Uniform Customs and Practice for Documentary Credits (the UCP) and International Standby Practices (ISP) which govern letter of credit law and practice. The course will also contrast letter of credit law with suretyship (guarantee) principles.