United Nations Convention on independent guarantees andstand-by letters of credit

As of my last knowledge update in September 2021, there is no specific United Nations Convention on independent guarantees and stand-by letters of credit. However, there are internationally recognized guidelines and rules that govern these instruments.

Stand-by letters of credit (SBLCs) and independent guarantees are widely used in international trade and finance transactions to provide security and assurance to parties involved. They function as financial instruments that guarantee payment or performance obligations.

The rules and standards governing SBLCs and independent guarantees are primarily established by the International Chamber of Commerce (ICC). The ICC has published a set of rules known as the Uniform Rules for Demand Guarantees (URDG 758) and the Uniform Customs and Practice for Documentary Credits (UCP 600). These rules provide a framework for the use and interpretation of SBLCs and guarantees.

It’s worth noting that individual countries may have their own domestic laws and regulations regarding SBLCs and independent guarantees. These laws may differ from country to country, and parties involved in such transactions should be aware of the applicable regulations in their specific jurisdiction.

Please keep in mind that there may have been developments or updates in international trade laws and conventions since my last update. It’s always advisable to consult the latest legal resources or seek professional advice to ensure accurate and up-to-date information.

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