What you'll learn:
- 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
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
