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LAW5585M
Module Reading List

International Trade Finance Law, 2021/22, Semester 2
Karina Patricio Ferreira Lima
K.Patricio@leeds.ac.uk
Tutor information is taken from the Module Catalogue

Lecture 1: Introduction to International Trade Finance Law

Essential reading

AR Malaket, Financing Trade and International Supply Chains: Commerce across Borders, Finance across Frontiers (Routledge 2014) Chapters 1 (‘International Trade: Where Does Financing Fit In?’ and 2 (‘The Fundamentals of Trade Finance’).

SM Kim, ‘Chapter 3: Documents for International Trade’ in Payment Methods and Finance for International Trade (Springer 2020). We will study bills of exchange and promissory notes (Part 3.3. of this chapter) in detail in Lecture 4.

Recommended reading

O Accominotti and S Ugolini, ‘The Structure of Global Trade Finance: A Very Long-Run View’ (VOX CEPR Policy Portal, 5 August 2019). A fascinating blog post on the legal and institutional features of international trade finance from a long-term perspective.

E McKendrick, ‘Chapter 32: The Characteristics and Organization of International Sales Transactions’ in Goode and McKendrick on Commercial Law (LexisNexis 2020). This chapter explores the topics covered in the essential reading in greater depth of detail.  

Further reading

SM Kim, ‘Chapter 2: International Trade Contracts’ in Payment Methods and Finance for International Trade (Springer 2020). This chapter explains some basic principles of English contract law within the context of international sales transactions. It may be useful to those of you who did not study Law as an undergrad or hold a Law degree from a non-common law jurisdiction.

R Fisman and I Love, ‘Trade Credit, Financial Intermediary Development, and Industry Growth’ (2003) 58(1) Journal of Finance 353-374. This paper discusses how the extension of trade credit has been crucial to the growth of the international trading system.

Lecture 2: The Key Institutions of International Trade Finance and Global Challenges: Financing the UN’s Sustainable Development Goals (SDGs)

Essential reading

M Auboin and V González Behar, ‘Why Exporters Need to Mind the Trade Finance Gap’ (World Economic Forum, 10 February 2020)

AR Malaket, Chapter 9 (‘Export Credit Agencies, International Institutions and Non-Bank Providers’) in Financing Trade and International Supply Chains: Commerce across Borders, Finance across Frontiers (Routledge 2014)

AR Malaket, Leveraging Supply Chain Finance for Development (E15 Expert Group on Trade, Finance, and Development 2015)

International Chamber of Commerce (ICC), Standards for Sustainable Trade and Sustainable Trade Finance (ICC 2021). This report is available on Minerva.

UN’s Sustainable Development Goals

Recommended reading

JK Levit, ‘A Bottom-up Approach to International Law-Making: The Tale of Three Trade Finance Instruments’ (2005) 30 Yale Journal of International Law 125-210. This article describes the soft law-making aspects of international trade finance law, with a focus on the ICC’s Uniform Customs and Practice for Documentary Credits (UCP), the International Union of Credit and Investment Insurers (Berne Union), and the OECD Arrangement on Officially Supported Export Credits. It also considers the limits of this law-making process in terms of transparency, accountability, and democratic legitimacy.

SM Kim, ‘Chapter 14: Export Credit Insurance or Guarantee’ in Payment Methods and Finance for International Trade (Springer 2020)

G Wynne, ‘Chapter 3: ECA Financings’ in A Practitioner’s Guide to Trade and Commodity Finance (2nd edn, Sweet & Maxwell 2021)    

EA Rutaagi, ‘How Trade Finance Programmes at Multilateral Development Banks are Closing the Trade Finance Gap’ (Trade Finance Global, 1 June 2020)

Further reading

JY Wang and M Ronci, ‘Chapter 11. Improving the Availability of Trade Financing: The Role of the World Trade Organization’, in Access to Trade Finance in Times of Crisis (International Monetary Fund 2006)

World Trade Organization, ‘Trade Finance and SMEs: Bridging the Gaps in Provision’ (WTO 2016)

DE Gianturco, Export Credit Agencies: The Unsung Giants of International Trade and Finance (Quorum Books 2001). In particular, ‘Chapter 15: Legal Context’ may be of interest.

World Economic Forum, The Global Enabling Trade Report 2016 (World Economic Forum and Global Alliance for Trade Facilitation 2016). Detailed data on how trade finance is one of the top three export obstacles for half of the world’s countries.

R Putz, ‘“Green”: The EBRD’s New Transition Concept’ (Trade Finance Global, 26 February 2020). Case studies on the European Bank for Reconstruction and Development (EBRD)’s Green Trade Facilitation Programme (Green TFP).

On the trade finance gap during the Covid-19 crisis:

Further resources

Alisa DiCaprio from R3: ‘Bridging the $1.5tn Trade Gap’ (Trade Finance Talks, 2 April 2019)

The Trade Finance Gap is Set to Double: Now What? (Trade Finance Global interview with Qamar Saleem, Regional Industry Manager, International Finance Corporation, 13 January 2021)

Development Finance: The Role of Export Credit Agencies, Trade Credit Insurers and Development Banks (Trade Finance Global interview with Diana Smallridge, CEO of International Financial Consulting, 10 April 2020)

Lecture 3: Methods of Payment and Blockchain-Enabled Technology in International Trade Finance

Essential reading

SM Kim, Payment Methods and Finance for International Trade (Springer 2020) Chapters 4 (‘Overview of Payment Methods’), 5 (‘Payment in Advance’), 6 (‘Open Account’) and 10 (‘Other Payment Methods’). We will study documentary collection and documentary credit in detail in Lectures 4, 5 and 6.

E Ganne, Can Blockchain Revolutionize International Trade?  (World Trade Organization 2018). Read, in particular, Chapters 2 (‘Blockchain in a Nutshell’) (pages 3-7); 3 (‘Can Blockchain Revolutize International Trade?’) (pages 17-28); and 4 (‘A World of Opportunities and Challenges’) (pages 97-104).

Recommended reading

International Trade Administration, Trade Finance Guide: A Quick Reference for US Exporters (US Department of Commerce 2012) chs 1-6

D Drummer and D Neumann, ‘Is Code Law? Current Legal and Technical Adoption Issues and Remedies for Blockchain-Enabled Smart Contracts’ (2020) 35(4) Journal of Information Technology 337

D Shearer, ‘Trade Finance and Distributed Ledger Technologies’ (2018) 2 Journal of International Banking and Financial Law 99. This article is available on Minerva or, otherwise, on Westlaw.

Further reading

J Goldfein and A Leiter, ‘Legal Engineering on the Blockchain: “Smart Contracts” as Legal Conduct’ (2018) 29 Law and Critique 141

SE Chang, HL Luo and Y Chen, ‘Blockchain-Enabled Trade Finance Innovation: A Potential Paradigm Shift on Using Letter of Credit’ (2020) 12(1) Sustainability 188

P Hacker and others (eds)Regulating Blockchain: Techno-Social and Legal Challenges (OUP 2019)

International Finance Corporation (IFC), Technology and Digitalization in Supply Chain Finance (World Bank 2020)

Lecture 4: Bills of Exchange and Documentary Collections

Essential reading

C Murray, D Holloway and D Timson-Hunt, ‘Chapter 9: Bills of Exchange’, in The Law and Practice of International Trade (12th edn, Sweet & Maxwell 2012)  OCR REQUESTED BY LIBRARY (HT 04/01/2022) Available as an Online Course Reading in Minerva

SM Kim, ‘Chapter 7: Documentary Collection’ in Payment Methods and Finance for International Trade (Springer 2020)

ICC Uniform Rules for Collections (URC 522) 

ICC Uniform Rules for Collections (URC 522) Supplement for Electronic Presentation (eURC) Version 1.0

Recommended reading

E McKendrick, ‘Chapter 20: Bills of Exchange’ in Goode and McKendrick on Commercial Law (LexisNexis 2020)  

C Murray, D Holloway and D Timson-Hunt, ‘Chapter 10: Collection Arrangements’, in The Law and Practice of International Trade (12th edn, Sweet & Maxwell 2012)  Available as an Online Course Reading in Minerva

Further reading

JH Dalhuisen, ‘Negotiable Documents of Title and Negotiable Instruments, in Dalhuisen on Transnational Comparative, Commercial, Financial and Trade Law (Hart 2013) (see, in particular, ‘Negotiable instruments, pages 569-592)   

D Sheehan, ‘Negotiation and Negotiable Instruments’ in The Principles of Personal Property Law (Hart 2017) (see, in particular, parts I, II and III)

S McKeering and W Yang, ‘Electronic Trade Documents: A Way Forward’ (2021) 7 Journal of International Banking and Financial Law 497. This article is available on Minerva.

Lecture 5: Documentary Credits I

Essential reading

SM Kim, ‘Chapter 8: Documentary Credit’ in Payment Methods and Finance for International Trade (Springer 2020)

SM Kim, ‘Chapter 9: UCP and Letter of Credit Examples’ in Payment Methods and Finance for International Trade (Springer 2020)

A Malek and D Quest, ‘Chapter 8: The Documents and their Examination’, in Jack: Documentary Credits (4th edn, Tottel 2009).See, in particular, Sections A and B. A digitised version of this chapter is available on Minerva.  Available as an Online Course Reading in Minerva 

ICC Uniform Customs and Practice for Documentary Credits (UCP 600)

ICC Uniform Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentations (“eUCP”) (V2.0)

Recommended reading

E McKendrick, ‘Chapter 35: The Financing of International Trade’ in Goode and McKendrick on Commercial Law (LexisNexis 2020), Section 3: The Documentary Credit: Nature, Mechanism and Relationships  

British Exporters Association, The BExA Guide to Letters of Credit - UCP600 Update (2007)

C Murray, D Holloway and D Timson-Hunt, ‘Chapter 11: Letters of Credit’, in The Law and Practice of International Trade (12th edn, Sweet & Maxwell 2012) (this chapter will also be used in Lecture 6)  Available as an Online Course Reading in Minerva

A Malek and D Quest, Jack: Documentary Credits (4th edn, Tottel 2009) ch 1-7  

Further reading

R King, Chapters 1 (‘Commercial Credits: Mechanism and Operation’), 2 (‘The Types of Credit’), 3 (‘The Relationship Between Buyer and Seller’) and 4 (‘The Contractual Relationships Arising Under a Credit’), in Gutterigde and Megrah’s Law of Bankers’ Commercial Credits (18th edn, Europa 2001). These chapters provide a clear and concise explanation of the main principles of documentary credits, types of credit and relationships arising under the documentary credit, with valuable references to case law. However, this book was written under UCP 500, which has now been replaced by UCP 600. Therefore, these chapters should be read in conjunction with the essential reading of this lecture, which is up-to-date and explains the changes introduced by UCP 600.

Lecture 6: Documentary Credits II and Receivables Finance

Essential reading

E McKendrick, ‘Chapter 35: The Financing of International Trade’ in Goode and McKendrick on Commercial Law (LexisNexis 2020), Sections 3. The Documentary Credit (from para 35.60 onwards); 4. Documentary Credits: Grounds for Withholding or Blocking Payment. Available as an Online Course Reading in Minerva 

C Murray, D Holloway and D Timson-Hunt, ‘Chapter 11: Letters of Credit’, in The Law and Practice of International Trade (12th edn, Sweet & Maxwell 2012) (see, in particular, sections 11-044 and 11-045 on fraud affecting letters of credit)  Available as an Online Course Reading in Minerva

SM Kim, ‘Chapter 12: Trade Finance for International Sale of Goods’ in Payment Methods and Finance for International Trade (Springer 2020) (see, in particular, Export Factoring and International Forfaiting)

Recommended reading

G Wynne, ‘Chapter 9: Receivables Finance: Forfaiting, Factoring and Invoice Discounting’ in A Practitioner’s Guide to Trade and Commodity Finance (2nd edn, Sweet & Maxwell 2021)     

G Wynne, ‘Chapter 10: Receivables Finance: Supply Chain Finance’ in A Practitioner’s Guide to Trade and Commodity Finance (2nd edn, Sweet & Maxwell 2021)    

Further reading

A Malek and D Quest, Jack: Documentary Credits (4th edn, Tottel 2009) chs 9-10

C Murray, D Holloway and D Timson-Hunt, ‘Chapter 13: Factoring, Forfaiting, Financial Leasing and Other Forms of Merchant Finance’, in The Law and Practice of International Trade (12th edn, Sweet & Maxwell 2012)   

R King, Chapter 6 (‘The Duty of the Parties Upon Presentation of Documents Under a Credit’) in Gutterigde and Megrah’s Law of Bankers’ Commercial Credits (18th edn, Europa 2001) (see, in particular, page 161 onwards on fraudulent documents). This chapter provides a clear explanation of the fraud exemption and its applicability to the letter of credit. However, please bear in mind that this book was written under UCP 500, which has now been replaced by UCP 600. Therefore, this chapter should be read in conjunction with the essential reading of Lectures 5 and 6, which is up-to-date and explains the changes introduced by UCP 600.

R Goode, H Kronke, and E McKendrick, ‘Receivables Financing: The UNIDROIT Convention on International Factoring and the United Nations Convention on the Assignment of Receivables in International Trade’, in Transnational Commercial Law: Texts, Cases and Materials (2nd edn, OUP 2015)  

Lecture 7: Demand Guarantees, Performance Bonds and Standby Credits

Essential reading

C Murray, D Holloway and D Timson-Hunt, ‘Chapter 12: Bank Guarantees and Other Contract Guarantees in General’, in The Law and Practice of International Trade (12th edn, Sweet & Maxwell 2012) OCR REQUESTED BY LIBRARY (HT 04/01/2022) Available as an Online Course Reading in Minerva

SM Kim, ‘Chapter 11: Independent Guarantee (Demand Guarantee)’ in Payment Methods and Finance for International Trade (Springer 2020)

E McKendrick, ‘Chapter 35: The Financing of International Trade’ in Goode and McKendrick on Commercial Law (LexisNexis 2020) Section 9. Demand Guarantees, Performance Bonds and Standby Credits OCR REQUESTED BY LIBRARY (IK 23/02/2022) 

ICC Uniform Customs and Practice for Documentary Credits (UCP 600)

ICC Uniform Rules for Demand Guarantees (URDG 758)

International Standby Practices (ISP 98)

Recommended reading

G Wynne, ‘Chapter 5: Standbys, Demand Guarantees and Bonds; and the Rules That Can Govern Them’ in A Practitioner’s Guide to Trade and Commodity Finance (Sweet & Maxwell 2021)    

N Enonchong, ‘The Problem of Abusive Calls on Demand Guarantees’ (2007) Lloyd’s Maritime and Commercial Law Quarterly 83

Further reading

A Malek and D Quest, ‘Chapter 12: Standby Credits, and Demand Guarantees and Bonds’, in Jack: Documentary Credits (4th edn, Tottel 2009)   

British Exporters Association, BExA Guide to On-Demand Contract Bonds (2013)

A Ward and G McCormack, ‘Subrogation and Bankers’ Autonomous Undertakings’ (2000) 116 Law Quarterly Review 121 OCR REQUESTED BY LIBRARY (HT 10/02/2022) 

On surety guarantees (as opposed to demand guarantees), see:

Lecture 8: Structured Trade and Commodity Finance

Essential reading

J MacNamara, ‘The Renaissance of STCF’ (TFR, February 2017)

G Wynne, A Practitioner’s Guide to Trade and Commodity Finance (2nd edn, Sweet & Maxwell 2021) Chapters 2 (‘Pre-export, Prepayment and Other Forms of Structured Trade Finance’) and 8 (‘Commodity Ownership and Special Purpose Vehicle Structures’) Chapter 2 Available as an Online Course Reading and Chapter 8 Extract Available as an Online Course Reading

F Lupo-Pasini, ‘Hidden Sovereign Finance’ (2021) 16(2) Capital Markets Law Journal 165. This article will inform our discussions in Seminar 5.

Recommended reading

G Wynne, A Practitioner’s Guide to Trade and Commodity Finance (2nd edn, Sweet & Maxwell 2021) Chapter 7 (‘Taking Security in Emerging Markets’)    

N Tostivin and J Clarke, ‘Commodity Finance: The Complete Security Package’ (2021) 5 Journal of International Banking and Financial Law 351. This chapter is available on Minerva.

Further reading

J MacNamara, Structured Trade and Commodity Finance in Emerging Markets (Woodhead 2001)

D Sainsbury, ‘Challenges for Stakeholders in Restructuring International Trade Finance Deals’ (2010) 4 Corporate Rescue and Insolvency 143

This list was last updated on 28/03/2022