BAFT release guidance paper relating to the use of automatic extension clauses


BAFT (Bankers Association for Finance and Trade) has released a guidance paper relating to the use of auto-extension clauses in standby letters of credit and demand guarantees. Whilst primarily produced for use by banks in the United States, banks located elsewhere should find its contents informative and constructive when considering the incorporation of an automatic extension clause into one of your transactions.

This paper outlines the good, the bad and the ugly as it relates to auto-extension clauses and the challenges faced by banks in managing the associated risks.

The paper can be accessed here Guidance Paper for Auto-Extensions.pdf 

Back to recent news

Recent News

ICC announces that Dubai Banking Commission Meeting will be re-scheduled due to COVID-19 outbreak 12/03/2020

Message from ICC Secretariat 12 March 2020: In light of the current outbreak of COVID-19 around the world, the Secretariat has to inform you that the ICC Banking Commission Annual Meeting in Dubai originally scheduled on 20-23 April 2020 will be rescheduled...more

OFAC enforcement information for first 2 months of 2020 12/03/2020

The U...more