... Currency Letters of Credit 24
Chapter 5 Letters of Credit – Special Types 29
Revolving Letters of Credit 30
Installment Letters of Credit 30
Advance Payment Letters of Credit 30
Red Clause Letters of ... Letters of Credit 31
Transferable and Back -to- Back Letters of Credit 31
Transferable Letters of Credit 31
Back -to- Back Letters o...
... identity of one party
from another, a Transferable Letter of Credit or a Back-
to- Back Letter of Credit may permit the transaction to go
forward.
Transferable Letters of Credit – When a Letter of Credit
issued ... provide
financial assistance in the form of grants, loans,
subsidies and guarantees. Grants, loans and subsidies
are forms of direct agency assistance. G...
... in any commercial or financial transac-
tion. With a Standby Letter of Credit, the Issuing Bank
substitutes its creditworthiness for that of its customer,
the Applicant. The Standby Letter of Credit ... CREDIT
Standby
The banking industry has found it useful to
distinguish between Commercial Letters of Credit,
used to pay the purchase price for the shipment
of goods, an...
... of Credit. A Standby Letter of Credit issued
in favor of a surety company is shown on page 57,
Illustration 20 .
Standby Letters of Credit as a Payment Mechanism
Standby Letters of Credit used as ... Bonds
Standby Letters of Credit are used to enhance the credit
rating of municipal and other bonds and notes and may
be structured as either a guarantee type or...
... be
transferred during the transitional period, the transfer-
ring bank may convert the currency and amount of the
credit into the euro equivalent.
2. 2 URCG 325 / URDG 458 / URCB 524 — Guarantees and
bonds
The ... 1st to the 10th, the 11th to
the 20 th, and the 21 st to the last day of such month, all
dates inclusive.
F. TRANSFERABLE CREDIT
Article 48
Transferable Credit
a...
... in
a manner necessary or desirable to permit the use of the
credit.
3. The applicant should be aware that the UCP contains
Articles such as Articles 13, 20 , 21 , 23 , 24 , 26 , 27 , 28 , 39,
40, 46 and ... CONSIDERATIONS
The application and issuance of the credit
1. The terms of a credit are independent of the underlying
transaction even if a credit expressly refers...
... calculation of the period.
19. Dates may be expressed in different formats, e.g., the
12th of November 20 03 could be expressed as 12 Nov 03,
12Nov03, 12. 11 .20 03, 12. 11.03, 20 03.11. 12, 11. 12. 03,
121 103, ... bill of lading date 12 May 20 02 , or
108
Airports of departure and destination
1 52. Air transport documents must indicate the airport of
departure and airport o...
... and Interpretation of
These Rules
1.01 Scope and Application
a. These Rules are intended to be applied to standby letters
of credit (including performance, financial, and direct pay
standby letters ... Customs and
Practice for Documentary Credits (UCP) and the Uniform
Rules for Demand Guarantees (URDG) do for commercial
letters of credit and independent bank guarantees.
Th...
... convey-
ance to another within the same mode of transportation.
Transferring Bank - A bank authorized by the Issuing
Bank by nomination in the Letter of Credit to effect a
transfer of the Issuing Bank’s ... evidenc-
ing shipment of merchandise and often is used in lieu of
bid bonds, performance bonds or payment guarantees
to secure a transaction or the performance of anoth...