This new work traces all the significant development in the law of pledges, guarantees and letters of credit since the completion of the previous edition in August 1998 which includes the newly developed principle of unconscionability. Developments of the law is presented first with a detailed overview of the law to date followed by in-depth study of the principles governing the area. Like the previous edition, the author has once again adopted a clear and precise approach when commenting on the principles that have enunciated from these cases. Extracts of judgements are included to provide a more accurate understanding of the legal principles in the law of pledges, guarantees and letters of credit. It serves as an authoritative text and tool for all in the field of banking.