UN Convention on Independent Guarantees and Stand-by Letters of Credit 2007

CIVIL SECTION

UNITED NATIONS CONVENTION ON INDEPENDENT GUARANTEES AND STAND-BY LETTERS OF CREDIT

REPORT OF THE WORKING GROUP CHAIR

Readers are cautioned that the ideas or conclusions set forth in this paper, including any proposed statutory language and any comments or recommendations, may not have not been adopted by the Uniform Law Conference of Canada. They may not necessarily reflect the views of the Conference and its Delegates. Please consult the Resolutions on this topic as adopted by the Conference at the Annual meeting.

Charlottetown, PEI, September 2007

[1] At its Annual Meeting in August 2006, the Conference decided to establish a Working Group “to prepare, in accordance with the directions of the Conference, a uniform act and commentaries to implement the Convention for consideration at the 2007 meeting; and to report on the desirability of any other legislative recommendations; and to work in co-operation with the National Conference of Commissioners on Uniform State Laws and the Mexican Uniform Law Centre, should those organizations so desire”.

[2] Since then, additional experts were sought to participate in a Working Group, which has now been established. Its members are Kathryn Sabo and Mireille-France Blanchard (Justice Canada), Marc Lacoursière (Université Laval), Steven Jeffery (Blaney McMurtry LLP), Michel Deschamps (McCarthy, Tétrault SNC) and Benjamin Geva (Osgoode). The Working Group has not yet met but will be meeting over the coming year via conference call and in person to the extent possible.

[3] In accordance with the recommendations presented to the Conference last year, the Working Group intends to complete the draft act and commentaries to implement the Convention set out in the Annex to this report for presentation to the Conference in 2008.

[4] The Working Group will also consider the development of domestic rules for independent guarantees and stand-by letters of credit along the lines of the Convention rules and taking existing common law into account.

[5] Among the issues the Working Group will need to consider is whether provisions for domestic guarantees should appear in a separate act or whether rules for a domestic regime and the Convention regime should be placed in one act. Guidance from the Conference on this point would be welcome.

[6] The services of legislative drafters will be needed later this year for both the domestic and international aspects.

[7] It should be noted that the Working Group anticipates working with the National Conference of Commissioners on Uniform State Laws and the Mexican Uniform Law Centre. We understand that NCCUSL has convened a drafting committee meeting in November in Denver, Colorado and it is expected that several members of the ULCC Working Group will attend.

Kathryn Sabo

Next Annual Meeting

2018 Conference (Centennial)

Delta Hotel

Québec City, QC

August 12 - 16, 2018