ISP98 provides standby users with rules designed for standbys, as opposed to the UCP, which was not. Because the UCP was designed for commercial LCs, considerable care has to be exercised to avoid difficulties and traps when using it for standbys. ISP98 avoids these problems and anticipates issues that commonly arise under standby practice. ISP98 can also be used for independent demand guarantees.

ISP98 was designed not only for bankers who already knew the practices being articulated, but also for lawyers and corporate users who may not be intimately familiar with them, and ultimately judges who must decide disputes.

ISP98 Rule 1.01(c) provides that undertakings subject to it may modify or exclude its provisions and ISP98 Rule 1.06 and 1.07 provide that a standby is an irrevocable, independent, documentary, and binding undertaking. In addition to functional definitions, ISP98 addresses obligations, presentation, examination of documents, notice and preclusion, transfer, assignment, and transfer by operation of law, reimbursement obligations, and timing.