Letter of Credit (LC)

ISP 98 is the set of rules that governs standby letters of credit. They have been published by ICC Banking Commission. ISP 98 - International Standby Practices ICC Publication No. 590 , 1998 Edition. ISP 98 is in force as of January 1, 1999. ISP 98 - International Standby Practices is the title of the book that is published by ICC to govern the standby letters of credit transactions (SBLC ). ISP 98 consists of 76 pages in total. Full details of ISP 98 for ordering considerations are as follows : ISP 98 -  International Standby Practices ICC Publication No. 590  , 1998 Edition. ISP 98 is in force as of January 1, 1999. Where to buy ISP 98? ISP 98 is both available by e-book format and hard copy. It is sold under online ICC Bookstores. You can buy ISP 98 from this  link .  Benefit of ISP 98 - International Standby Practices  ISP98 International Standby Practices was written exclusively for standby letters of credit. Prior to ISP 98, standby letters of ...

What is standby letters of credit?  Documentary credits, however named, have certain characteristics in common. First of all they are separate transactions by their nature from the underlying contracts on which they may be based. Secondly, documentary credits deal with documents only but not with the goods, services and/or other performances to which the documents may relate.  Letters of credit can balance the risks of the parties because the irrevocable payment guarantee is given by an independent and reliable third party, which fulfills its irrevocable payment obligation against the presentation of conforming documents. These common characteristics have been stated in both of the latest documentary credit rules; UCP 600 and ISP 98.  Documentary credits can be divided into two main categories. Commercial Letters of credit and Standby Letters of Credit.   Commercial Letters of Credit :  Commercial letters of credit are mainly used as a primary paym...

+++++++++++++++++++++++++++++++  INCOMING MESSAGE  ++++++++++++++++++++++++++++++++ Message Receive Time  : 03.08.2014 - 11:00 Message Type  : 760 - GUARANTEE / STANDBY LETTER OF CREDIT Delivery  : N Record Number  : 0006000261000 Sender  : DEBRDEGGXXX DEUTSCHE EXPORT BANK AG-FRANKFURT AM MAIN - GERMANY Receiver  : TLHLTRISXXX TURKISH IMPORT BANK A.S.- ISTANBUL - TURKEY Value Date  : 0 Currency  : Amount  : ,00 Branch  : TUM Department  : MUTUAL Session Number  : 4400 Sequence Number  (ISN) : 960000 =========================================== 27:Sequence of Total     1/1 20:Transaction Reference Number     100BGS1100000 23:Further Identification     ISSUE 30:Date     Date : 02.08.2014 40C:Applicable Rules     URDG 77C:Details of Guarantee WE HEREBY KINDLY REQUEST YOU TO ADVISE OUR FOLLOWING GUARANTEE...

What is a bank guarantee?  Demand guarantees are usually issued by banks, which is why they are also called 'bank guarantees'; however, they can also be issued by other financial institutions or companies as well. A demand guarantee could also be called as an independent demand guarantee, autonomous demand guarantee, first demand guarantee or bank guarantee as explained above.  n this article I will be using “ bank guarantee ” and “ demand guarantee ” terms interchangeably for one another with the same meaning. Definition:  ICC’s URDG 758 defines a demand guarantee as follows: “demand guarantee or guarantee means any signed undertaking, however named or described, providing for payment on presentation of a complying demand”.  Here is anothor definition of a bank guarantee: "A demand guarantee is an irrevocable undertaking issued by the guarantor, upon the instructions of the principal to pay the beneficiary any sum that may be demanded by that beneficia...

Almost all of the letter of credit texts having a phrase Under field "40E: Applicable Rules" telling us that credit subject to "UCP LATEST VERSION".  What does UCP mean? and What is the latest version of UCP? On this page we will have look at this statement and I will be answering the questions such as " What does UCP mean? " and " What is the latest version of UCP? ". What does UCP means? UCP is the short form of  Uniform Customs and Practice for Documentary Credits . UCP is the set of international rules that govern the letter of credit transactions throughout the world. It would be necessary to state that some practicers mistakenly use UCPDC abbreviation instead of UCP. Correct usage should be UCP for the  Uniform Customs and Practice for Documentary Credits  not UCPDC. What is the latest version of UCP? Uniform Customs and Practice for Documentary Credits  have been established long ago. First  international letter of cre...

----------------  Instance Type and Transmission  ---------------------- Original received from  SWIFT Priority/Delivery    :    Normal Message Output Reference         :    1225 121016XXXXXXXXX5657939061 Correspondent Input Reference    :    1225 121016XXXXXXXXX1178375172 -----------------------  Message Header  --------------------------------- Swift OUTPUT FIN 700 Issue of a Documentary Credit Sender      :  BANCOSPAXXX                             BANCO BRASIL SA                             (HEAD OFFICE)                              RUA BRIG. LUIZ ANTONIO 1827                      ...

Almost all of the ICC opinions issued so far are related to complaints about "alleged discrepancies". What we can see from the results of the ICC opinions is that  ICC Banking Committee  does not agree with banks in most cases. Definition : or lack of definition : How can we define a discrepancy in a letter of credit transaction. Seriously is there any reference to the definition of a discrepancy in the letter of credit rules? Is it too simple to be forgotten? Or too complicated to define?  What is the definition of a discrepancy according the UCP 600 rules?      Inconsistency in Application : Discrepancies can change from country to country, bank to bank, document checker to document checker. Let me give you a real life example here. Couple of years ago we have presented documents to the confirming bank under a set of letters of credit consists of 10-15 pcs of independent letters of credit. All of these small amount independent letters of ...