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Key Issues and Actions to Effect Drawing Under a Letter of Credit ("LC") During COVID-19 | Pillsbury Winthrop Shaw Pittman LLP


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The onset of a global pandemic has highlighted lessors’ need for clarity and certainty when drawing on their LCs in the absence of cash security.
TAKEAWAYS
It is important to request that the issuing (or confirming) bank confirms its protocol for drawing LCs during the COVID era, while staff are working from home and travel is restricted.
Drawing requests should be submitted in person wherever possible to minimize the risk of originals going missing.
Full details of the submission should be recorded and sent to the issuing (or confirming bank), including date and time of submission and the name of the individual recipient. ....

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