ABSTRACT
International Banks in 175 countries operate Letters of Credit under the Uniform Customs and Practice for Documentary Credits (UCP) sponsored by the International Chamber of Commerce (ICC). The UCP has been developed by the ICC in response to the needs, practises and usages of the commercial parties involved. The latest revision by the ICC of the UCP was finalised in 1993. To deal with the diverging practices, customs and uses of Standby Letters of Credit the International Standby Practices (ISP98) was formulated and came into effect on 1 January 1999. The formulation of separate rules for Standbys evidences the maturity and importance of this financial product.
