The applicable law for standby letters of credit in the Colombian legal system
The objective of this research is to determine the law applicable to standby letters of credit in Colombia. Such research seeks to resolve the controversy found when applying uniform international regulations to standby letters of credit in local transactions. In order to accomplish this objective,...
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| Format: | Article |
| Language: | English |
| Published: |
2014
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| Online Access: | https://dialnet.unirioja.es/servlet/oaiart?codigo=7249128 |
| Source: | Revista Derecho Privado: (Universidad de los Andes), ISSN 1909-7794, Nº. 52, 2014, pags. 74-97 |
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| Summary: |
The objective of this research is to determine the law applicable to standby letters of credit in Colombia. Such research seeks to resolve the controversy found when applying uniform international regulations to standby letters of credit in local transactions. In order to accomplish this objective, I begin this paper by first posing the research question, then defining the term "standby letter", and finally analyzing the applicable law. I conclude that the nature of standby letters of credit is not one of a suretyship, as the Financial Superintendence of Colombia argues, and therefore Colombian regulation of suretyships should not be applied to standby letters of credit because they contradict the very essence of this instrument. Rather, I argue that parties should incorporate uniform international regulations, which have been issued specifically to govern this instrument. |
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