Bank Guarantees and Standby Letter of Credit - An Overview

Descripción

Bank guarantees and standby letter of credit are crucial instruments which are used in international trade finance. It is very important to know the concepts behind these instruments for correct and effective usage in international contracts and business. This course starts from the very basics and provides all the relevant information needed to handle the guarantee/SBLC trade desk. It also provides all the essential information for handling consulting assignments for business analysts. It covers not only the theoretical knowledge but also the practical aspects like how to use safeguard clauses in the guarantee wordings to avoid wrongful claims. It also discusses how SWIFT messages are used in guarantees and standby letter of credit, the related message types and message and guarantee examples. This course also has more than 100 questions so that you can evaluate your understanding on the subject. This course is the best choice to begin learning about guarantees and SBLCs and can be used as a stepping stone for beginning your career in trade finance domain. Ideal for- Bankers handling trade finance desk Business Analysts/ Consultants Aspirants of CSDG Course Content- Introduction What is guarantee and Standby Letter of Credit? Key features of Guarantee and Standby letter of credit Parties in a demand guarantee and Standby letter of credit ICC Rules for guarantees and Standby letter of credit Process flow of a demand guarantee Process flow of a Standby letter of credit Broad Categories of Guarantees/ SBLCs Independent/Unconditional/Demand Guarantees and Dependent/Conditional/ Accessory/ Suretyship Guarantees Direct Guarantees/SBLC and Indirect/ Counter Guarantees and Confirmed SBLCs Payment Guarantees and Performance Guarantees Export related Guarantees and Import related Guarantees Types of Guarantees and Process Flow and Sample Clauses Bid Bond Performance Guarantee Advance Payment Guarantee Retention Money Guarantee and Warranty Guarantee Payment Guarantee Chronology of Guarantees in a contract Other types of Guarantees Brief summary of URDG 758 and ISP 98 URDG 758 Article 1 - Article 14 URDG 758 Article 15 - Article 33 ISP 98 Rules Comparisons Comparison between SBLC and demand guarantee Comparison between SBLC and Letter of Credit Comparison between Letter of Credit and Guarantee Drafting of SBLC/Guarantee - Safeguard Clauses Mandatory information to be included Variation of value - Reduction in payment guarantee/SBLC Variation of value - Reduction in advance payment guarantee/SBLC Variation of value - Increase in performance guarantee/SBLC Operative Event/ Date of a Guarantee/ SBLC Evergreen/ Auto Renewal Clause Operational Steps of issuing a bank guarantee/ SBLC SWIFT Messages used in Guarantees and SBLCs Relevant Message Types Recent changes in MT 760 Structure Examples of Guarantee and SBLC Example of a Performance Guarantee MT 700: Example of a Standby Letter of Credit MT 760: Example of a Standby Letter of Credit Practice Test

Lo que aprenderás

• Handle a Bank Guarantee/ SBLC desk job confidently by understanding the various types, categories, process flows and life cycle of Guarantees/ SBLCs
• Understand URDG 758 and ISP 98 - Main points
• Learn to use Safeguard clauses while drafting Bank Guarantees/ SBLC wordings
• Learn to Use Category 7 SWIFT messages in Bank Guarantees/ SBLCs
• Evaluate yourself with more than 100 questions

Requisitos

• Basic knowledge of trade finance