TELESEMINAR: UCC Toolkit: Letters of Credit – A National Perspective
September 10, 2014
12:00 – 1:00 p.m.
1.00 MCLE hours
Letters of credit are used to secure payment and ensure performance in business, commercial and real estate transactions. One or more parties to a deal may refuse to complete a deal without the benefit of a letter ensuring payment or performance. These letters involve a complicated mix of parties –applicants, issuers, beneficiaries and sometimes assignees. The challenge in using these instruments is ensuring their compliance with UCC Article 5, the shortest and most obscure portion of the code, and anticipating disputes that commonly arise. Poorly drafted or quickly reviewed letters can easily lead to defeating the intent of a business, commercial or real estate transaction. This program will provide you with a real-world to guide to using letters of credit, drafting their most essential components, understanding the roles and rights of each of the parties to a letter, and common traps in complying with UCC Article 5.
- Types of letters of credit, including commercial and standby letters
- Uses of letters in business transactions & differences between letters and other credit enhancements
- Advantages of letters of credit, including cost, adaptability, litigation, and bankruptcy issues
- Practical framework of letter of credit law under UCC Article 5
- Drafting and reviewing essential components of letters of credit
- Roles and rights of applicants, issuers, beneficiaries, and assignees – and attorneys
- Common disputes in letters of credit
Carter H. Klein, Jenner & Block, Chicago