ISP 98 condition of issuance.

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ISP 98 condition of issuance.

Post by dinesh2476 » Sat Aug 10, 2019 12:37 am

2.03 conditions to issuance

A standby is issued when it leaves an issuers control unless it clearly specifies that it is not then issued or enforceable.
Statements that a standby is not 'available'' ,''operative'',''effective'',or the like do not affect its irrevocable and binding nature at the time it leaves the issuers control..

Does above clause mean to say that if LC has a condition that standby letter of credit is not operative/not effective, it does not require any attention of the confirmer/beneficiary?

what would be the scenario despite knowing the above said condition, issuer issues an LC with statement like not operative/not effective.

Thanks & Regards

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