ISP 98 Clause Samples

The ISP 98 clause refers to the International Standby Practices 1998, a set of standardized rules governing the issuance and operation of standby letters of credit. When incorporated into a standby letter of credit, ISP 98 provides a uniform framework for procedures such as presentation of documents, examination, and payment obligations. For example, it clarifies timelines for document submission and the responsibilities of banks and beneficiaries. Its core practical function is to reduce ambiguity and disputes by ensuring all parties follow consistent, internationally recognized practices.