International Standby Practices (ISP)

International Standby Practices (ISP) is a set of rules and guidelines governing the issuance and use of standby letters of credit. These practices standardize the application, issuance, and enforcement of standby L/Cs in international trade. The ISP provides a common framework for banks, businesses, and legal entities engaged in international commerce.

Examples of significant instances include:

1. Application: Process of requesting a standby letter of credit.
2. Issuance: Procedure banks follow to create a standby L/C.
3. Enforcement: Legal mechanisms to enforce payment obligations.

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