Standby L/C

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Dear Mr. Lee,
This is Christina of V Banking Corp (City C) Ltd. I have been in your class for several times.
Now I have a question to ask and see whether you can give me advice. For Standby L/C, if the L/C doesn't mention "partial drawings allowed or not allowed", can we draw the Standby L/C partially?
Your kind assistance in this matter is highly appreciated.
Thanks and regards,
Christina
email: christina@***.com.**

Dear Christina,
From common sense point of view, all standbys should be made available for partial drawing because most of the cases, the default would not be 100%. Only some terms and conditions of the underlying contracts are breached.
Having said that, if the standby is subject to UCP 500 Article 40 (a) allows partial drawing unless prohibited by the standby.
If the standby is subject to ISP98, partial drawing is also allowed under Rule 3.08 (a) & (b) unless otherwise stipulated in the standby.
Best regards,
T. O.

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