U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

59–118 

" ! SENATE 

114TH CONGRESS

2d Session 

TREATY DOC. 

2016

114–9 

U.N. CONVENTION ON INDEPENDENT GUARANTEES 

AND STAND-BY LETTERS OF CREDIT 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

UNITED NATIONS CONVENTION ON INDEPENDENT GUARANTEES 

AND STAND-BY LETTERS OF CREDIT (CONVENTION), DONE AT 

NEW YORK ON DECEMBER 11, 1995, AND SIGNED BY THE 

UNITED STATES ON DECEMBER 11, 1997 

FEBRUARY 10, 2016.—Treaty was read the first time, and together with 

the accompanying papers, referred to the Committee on Foreign Relations and ordered to be printed for the use of the Senate 


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LETTER OF TRANSMITTAL 

THE WHITE HOUSE, February 10, 2016. 

To the Senate of the United Slates: 

With a view to receiving the advice and consent of the Senate to 

ratification, subject to certain understandings set forth in the enclosed report, I transmit herewith the United Nations Convention 

on Independent Guarantees and Stand-By Letters of Credit (Convention), done at New York on December 11, 1995, and signed by 

the United States on December 11, 1997. The report of the Secretary of State, which includes an overview of the proposed Convention, is enclosed for the information of the Senate. 

As a leader in transactional finance, the United States participated in the negotiation of this Convention at the United Nations 

Commission on International Trade Law with the support of U.S. 

commercial and financial interests. The Convention establishes 

common rules on stand-by letters of credit and other independent 

guarantees, instruments that are essential to international commerce, and thereby reduces the uncertainty and risk that may be 

associated with cross-border transactions. With two minor exceptions, the Convention’s provisions are substantively similar to the 

uniform State law provisions in the Uniform Commercial Code Article 5 (Letters of Credit), which all States and the District of Columbia, Puerto Rico, and the Virgin Islands have enacted. 

Ratification by the United States of this Convention can be expected to encourage other countries to become parties to the Convention. While eight countries currently are parties to the Convention, having a greater number of parties to the Convention would 

promote the stability and efficiency of international commerce. 

The Convention has been endorsed by leading banking and business associations in the United States. 

The Convention would be implemented through Federal legislation to be separately transmitted by my Administration to the Congress. 

I recommend, therefore, that the Senate give early and favorable 

consideration to the Convention and give its advice and consent to 

its ratification, subject to certain understandings set forth in the 

enclosed report. 

BARACK OBAMA. 


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LETTER OF SUBMITTAL 

DEPARTMENT OF STATE, Washington, August 8, 2014. 

The PRESIDENT, The White House. 

THE PRESIDENT: I have the honor to submit to you, with a view 

to its transmittal to the Senate for advice and consent to ratification, the United Nations Convention on Independent Guarantees 

and Stand-By Letters of Credit, subject to the understandings set 

forth in the enclosed overview of the Convention. The Convention, 

which was adopted in New York on December 11, 1995, was signed 

by the United States on December 11, 1997, and came into force 

on January 1, 2000. Eight countries currently are parties to the 

Convention. 

The Convention promotes international commerce, as well as the 

safety and soundness of banking practices, by establishing common 

rules on stand-by letters of credit and other independent guarantees, instruments that are essential to international commerce. The 

Convention is consistent with modern rules governing these instruments, including rules that give effect to the choice of law decisions 

of transacting parties. With two minor exceptions, the Convention’s 

provisions are substantively similar to the uniform state law provisions in Uniform Commercial Code Article 5 (‘‘Letters of Credit’’) 

which all U.S. states and the District of Columbia, Puerto Rico, and 

the Virgin Islands have enacted. 

The Convention has been endorsed by leading associations and 

organizations in the United States, including the American Bar Association; the now merged Bankers’ Association for Finance and 

Trade and the International Financial Services Association, which 

together are the American Bankers Association affiliate focused on 

international letter of credit operations; the United States Council 

on International Business; and the Institute for International 

Banking Law and Practice. 

The Uniform Law Commission and the American Law Institute 

support U.S. ratification of the Convention. These two entities formulate the Uniform Commercial Code. The International Chamber 

of Commerce also endorses the Convention and has recommended 

that its national committees and their banking and trade finance 

members, representing all internationally active bank issuers, promote the ratification of the Convention in their various countries. 

The United States is a leader in transactional finance, and its 

ratification of this Convention can be expected to encourage other 

countries to become party to the treaty. Having a greater number 

of parties to the Convention would promote the stability and efficiency of international trade. 


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The Convention will not be self-executing, and would be implemented through federal legislation. 

I recommend, therefore, that you transmit the Convention to the 

Senate for advice and consent to ratification. 

Respectfully submitted. 

JOHN F. KERRY. 

Enclosures: As stated. 


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