Coordinated with release of the Supreme People’s Court of the People’s Republic of China’s (PRC) long-awaited “Provisions on Several Issues Concerning the Trial of Disputes Over Independent Guarantees” which entered into force on 1 December 2016, the Institute of International Banking Law & Practice (IIBLP) has published an annotated English translation of the Chinese Provisions for Independent Guarantees.
Comprised of 26 Articles, these Provisions have the force of law in China and are binding on all Chinese courts in all cases currently under consideration. Because knowledge of the Provisions is critical to the LC community, IIBLP collaborated with the Beijing Jincheng Tongda& Neal Law Firm in an effort led by Professor James E. BYRNE and Mr. JIN Saibo to produce a definitive Annotated English Translation.
“These Provisions will significantly impact guarantee practice for anyone dealing with Chinese banks and China. They are a matter of great importance to bankers (operations and correspondent), lawyers, and business people who use guarantees”, said IIBLP Director Professor James E. BYRNE. “The Provisions provide a bright line rule to answer the pressing question of whether an undertaking should be treated as independent and also address fraud, stop payment orders, the weight to be given to practice rules, and domestic guarantees.”
“During the past several years, I have carefully watched the progress and development of these Provisions. Owning to the massive market and use of independent guarantees in China, they will have a profound and lasting impact in safeguarding the interests of parties to independent guarantees and fostering proper adjudication of independent guarantee disputes when they arise”, said JIN Saibo of Beijing Jincheng Tongda& Neal Law Firm.
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The Translation will be available on 10 February 2017. Additionally, a 2 hour Introductory Video by Mr. JIN and Professor BYRNE is currently available at shop.iiblp.org/prcrules. Planned future products are an Analytical Commentary on the Provisions and live programmes.