Letters of credit play a vital role in financing international transactions, and are becoming increasingly popular domestically as substitutes for more traditional secured financing. As such, they deserve substantially more scholarly attention than they receive outside of specialized treatises...

It is argued that, to a businessman nothing is simpler than an irrevocable letter of credit transaction; he or she never thinks about the nature of the obligation incurred by the issuing bank. However, significant uncertainty, ambiguity as to the nature of the obligation arises when lawyers,...

This article examines the preference issues that can confront a creditor that held a standby letter of credit to secure a debtor's obligations where the debtor performed its obligations in the 90-day preference period prior to bankruptcy. The article discusses the decision in In re Powerine, 59...