March 29, 2019

Letters of Credit & Applicant Bankruptcy: U.S. & Canadian Bankruptcy Provisions and Cases for Beneficiaries, Issuers, Applicants & Others

This program examines the effect on a letter of credit (LC) transaction of the U.S. or Canadian bankruptcy of the applicant (Applicant) for the LC.  Questions explored include:

  • May the beneficiary (Beneficiary) of the LC draw on the LC or is it stayed from drawing because of the bankruptcy proceeding?
  • May the issuer (Issuer) of the LC pay a facially complying drawing on the LC or is it stayed from doing so because of the bankruptcy proceeding?
  • If the Issuer pays the LC drawing, may the Beneficiary keep the LC proceeds?
  • If the Issuer pays the LC drawing, is it entitled to be reimbursed
  • If the Issuer has been reimbursed, is it entitled to keep the reimbursement?
  • What happens if the Beneficiary fails to draw on the LC?
Premium Content For:
  • Business Law Section
  • CL1903SPR - 2019 Business Law Section Spring Meeting