Text - Treaty Document: Senate Consideration of Treaty Document 114-9All Information (Except Treaty Text)

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[Senate Treaty Document 114-9]
[From the U.S. Government Publishing Office]








114th Congress    }                               {       Treaty Doc.
                                 SENATE
 2d Session       }                               {         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

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 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
          
                                   ______

                         U.S. GOVERNMENT PUBLISHING OFFICE 

59-118                         WASHINGTON : 2016          
          
          
          
          
          
          
          
          
          
          
          
                         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.
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                          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.
    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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