International Standby Practices

The book "International Standby Practices" (ISP98) is a set of rules developed by the International Chamber of Commerce (ICC) to govern standby letters of credit and demand guarantees. Here is a comprehensive overview of the book:

Key Themes

1. Standby Letters of Credit: The book focuses on the precise and detailed framework for practitioners dealing with standby letters of credit, which are financial instruments used to guarantee the performance of a contract.
2. International Standards: ISP98 provides neutral rules that are acceptable in most situations, aiming to reduce the cost and time of drafting, limit problems in handling, and avoid disputes and unnecessary litigation.
3. Definitions and Interpretations: The book contains precise definitions of key terms such as "original" and "automatic amendment," and it provides a comprehensive interpretation of each rule, including a statement of its origin and place in standby practice.
4. Standby Process: ISP98 covers the standby process from "Obligations" to "Syndication," offering a detailed framework for practitioners.

Plot Summary

ISP98 is not a narrative book but a set of rules designed to standardize the use of standby letters of credit internationally. It reflects the generally accepted practices from a wide range of standby users, including bankers, merchants, rating agencies, corporate treasurers, credit managers, government officials, and banking regulators.

Critical Reception

Given its nature as a set of rules rather than a book in the traditional sense, ISP98 has not received traditional critical reviews. However, it is widely recognized as an essential tool for understanding and applying standby letters of credit in international transactions. The Official Commentary on ISP98 and the official interpretations issued by the Council on International Standby Practices (CISP) are highly regarded for their clarity and usefulness in interpreting the rules.

Practical Tools and Resources

• Official Commentary: The Official Commentary on ISP98 provides a comprehensive interpretation of each rule, including practical examples and explanations.
• User's Guide: The ISP98 User's Guide, also known as The Official Commentary, offers practical examples and explanations of each ISP98 rule, making it an invaluable resource for practitioners.
• Official Interpretations: The CISP issues official interpretations on ISP98 articles to ensure that the practices remain current with standards in international standby and guarantee law and practice.

In summary, ISP98 is a critical resource for anyone involved in standby letters of credit and demand guarantees, providing a precise and detailed framework that is essential for standardizing these financial instruments internationally.