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Trade Finance

Select jurisdiction(s)

Select specific jurisdictions to filter on. Alternatively select no jurisdictions and select questions below to see all jurisdiction answers for them.

Select question(s)

Select specific jurisdictions to filter on. Alternatively select no jurisdictions and select questions below to see all jurisdiction answers for them.

    Bills of exchange

  • 1.

    Does your country have specific statutes governing bills of exchange?

  • 2.

    Do these laws follow the Geneva Convention providing a Uniform Law for Bills of Exchange and Promissory Notes of 1930 or the United Kingdom

  • 3.

    What are the fundamental elements of a bill of exchange that is freely negotiable and enforceable under the laws of your jurisdiction?

  • 4.

    Under your country’s laws, can a bill of exchange include a governing law clause? Would a foreign governing law be recognised by a local court?

  • 5.

    Do the laws of your jurisdiction recognise the concept of a “holder in due course” or a “bona fide purchaser”, free from all claims to it by any person and from all defences of any third party?

  • 6.

    If so, what steps must be taken to qualify as a holder in due course or bona fide purchaser?

  • 7.

    Are any stamp taxes, duties, levies, imposts or similar charges payable in connection with a bill of exchange pursuant to the laws of your jurisdiction? Who is responsible for paying them?

  • 8.

    Is a banking licence or any other type of approval, consent or filing required for an entity to purchase a bill of exchange in your jurisdiction? Does this depend on whether the purchaser is a foreign entity?

  • Letters of credit

  • 9.

    Does your jurisdiction have specific statutes governing letters of credit?

  • 10.

    Is the issuer’s obligation to pay independent of the applicant’s ability or willingness to reimburse the issuer and any commercial dispute between the applicant and the beneficiary of the letter of credit?

  • 11.

    Must a beneficiary’s presentation to draw under a letter of credit comply strictly with the terms of the letter of credit for the issuer to be obliged to pay?

  • 12.

    Are issuers expected to disregard any non-documentary conditions in a letter of credit under the laws of your jurisdiction?

  • 13.

    Under the laws of your jurisdiction, must letters of credit have a set expiry date or can they be perpetual? Must letters of credit be available for a specific amount or can they be open-ended in terms of the issuer

  • 14.

    Are standby letters of credit prevalent in your jurisdiction? What about demand guarantees?

  • 15.

    Is the use of ISP98 as a set of governing rules for standby letters of credit common or are they generally construed in accordance with UCP600 or other rules?

  • 16.

    Under the laws of your jurisdiction, can a confirming bank seek a remedy from the applicant if the issuing bank defaults on its reimbursement obligations?

  • 17.

    Assuming the laws of your jurisdiction apply, are there any elements of letters of credit that cannot be varied by agreement or by provisions stated in a letter of credit?

  • Account receivable purchases

  • 18.

    Is the concept of a ‘true sale’ recognised in your jurisdiction? What are the legal requirements for a sale of accounts receivable to be treated as a true sale?

  • 19.

    In your jurisdiction, is there a centralised register or record of purchased receivables that can be viewed by third parties?

  • 20.

    Under the laws of your jurisdiction, can a receivable be sold, assigned or pledged without the underlying account debtor’s consent if the commercial contract giving rise to the receivable does not prohibit it? If the consent of the underlying account debtor is required, what is the proper means of effecting such consent?

  • 21.

    If the seller of the receivables becomes insolvent, could the accounts receivable that have been sold become part of the seller’s estate under the insolvency proceedings?

  • 22.

    If your country’s laws govern the underlying commercial contract giving rise to the receivable, may the seller enter into an accounts receivable purchase agreement that is governed by foreign law?  

  • 23.

    Is a banking licence or any other type of approval, consent or filing required for an entity to purchase a receivable in your jurisdiction? Does this depend on whether the purchaser of the receivable is a foreign entity?

  • Pre-export finance agreements

  • 24.

    Is there any beneficial tax treatment in your jurisdiction for pre-export finance loans as compared to other types of loans?

  • 25.

    Regarding pledged property, what is the proper means for creating and perfecting or providing notice of a security interest to make it effective against, and to have priority over, third parties?

  • 26.

    Is there any restriction on the ability to have a perfected and enforceable security interest over the same pledged property under the laws of your jurisdiction and the laws of a foreign jurisdiction simultaneously?

  • 27.

    Is there a centralised register or record of security interests in your jurisdiction? Does entry in the register put third parties on notice of the secured interest?

  • 28.

    Are any stamp taxes, duties, levies, imposts or other similar charges payable in connection with a pre-export finance agreement pursuant to the laws of your jurisdiction? Who is responsible for paying them?

  • 29.

    Is there any requirement that the signatures to a pre-export finance agreement or any related security agreements be notarised for the signatures or the agreements to be valid?

  • 30.

    In your jurisdiction, is there any requirement that a pre-export finance agreement or related security agreements be translated into the local language and be registered with a government authority? Must translations be notarised?

  • 31.

    Is a banking licence or any other type of approval, consent or filing for an entity to engage in a pre-export financing in your jurisdiction? Does this depend on whether the proposed creditor in such transaction is a foreign entity?