Journal article
THE RESTATEMENT OF SURETYSHIP: SURETYSHIP AND LETTERS OF CREDIT: SUBROGATION REVISITED
William & Mary Law Review, Vol.34, pp.1087-1403
01 Jul 1993
Abstract
I. INTRODUCTION "Subrogation in letters of credit." The words strike fear in the hearts of some letter-of-credit aficionados. "If [the rules governing letters of credit] are subordinated to more pliable precepts appropriate to equitable resolution of disputes, the very existence of the letter of credit as a useful business device can be destroyed as surely as a wisteria vine can strangle an oak." 1 For others, the phrase is a welcome acknowledgment that certain principles of equity often applied in, but not limited to, the suretyship or guaranty context are equally applicable in the letter-of-credit context. With two parallel drafting processes underway, one in the guaranty or suretyship area with the promulgation by the American Law Institute of a Restatement (Third) of Suretyship, and the other in the letter-of-credit area with a revision of Article 5 of the Uniform Commercial Code, some resolution of the extent of the overlap between the two fields may be forthcoming. The present drafting of a Restatement of Suretyship is an ambitious effort to distill various types of devices (guaranties, assumptions of debt, performance bonds, payment bonds, and fidelity bonds) to their essence and to articulate basic commonly shared principles. 2 In many respects, the effort is like that undertaken by the drafters of Article 9 of the Uniform Commercial Code, who endeavored to rationalize the principles applicable to the various types of security devices previously subject to divergent and often conflicting statutory treatment. 3 Given such an ambitious ...
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Details
- Title
- THE RESTATEMENT OF SURETYSHIP: SURETYSHIP AND LETTERS OF CREDIT: SUBROGATION REVISITED
- Creators
- AMELIA H. Boss
- Publication Details
- William & Mary Law Review, Vol.34, pp.1087-1403
- Publisher
- College of William & Mary. William & Mary Law Review
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Thomas R. Kline School of Law
- Identifiers
- 991020535053404721