8;X0EbAQ?$')dF[!uJc]<9!_&p? *G*9Ms*B])mLe&e%jAEJ^tqQ+ TcWDVfTuL:[S\*RP\/;K5)_;VhkBGFD8r_W:LKLOVHm@XKt7/V#mhC;(6GD5MKqrs C?qBBg1o9(J38A?2&r9&OPR,d%tt\tHmOL0lEmM4:oC[>S_fCl.Fgn=CqJ(8XKn82 Also, small businesses can have difficulty competing against bigger and better-known rivals. ]9VD4 4VOgg6:q*\*@>>c:B5)#Dq%[mEpNrjbU5J#T?`0t.$kap)Vs@sp3C*=2e\OTL8t=$ 'eU9>F[QO@VNgNK^3=Yrj+TkTIKl :6j%i_h9$hg\eLl[l=";p$0Xu()^T,31r>YI'I'Hq4mO'J&Gjg[C(N8pj2-M0db#- i?0;Z\RbhkPPRUk8bSk<1*[qW$''"UVJ/jr"/*;HYWkQV@;Uno)K;WP94+1 ;ui.$\%ckh+G!t6pE endstream endobj 99 0 obj 2543 endobj 100 0 obj<>/ProcSet 2 0 R>>>> endobj 101 0 obj<>stream Under the intentional fraud standard the letter of credit can continue to be preserved and encouraged as a valuable commercial instrument. >5UO@_70cFb;2EGU.NaeUc+`F;0fSQkH%\XYTI)QO6eIWDnlEV%8FiCH!2$Gdbu3^ MUQ]bX[\f*U>EFC7G'X\?DVQId4:j7`Ze!$eB?1G@$) Fnkj0Pl(n8LiZe-2Ai#3^(dM^-e%B&[);.11s"cL^Xe$RPZ&c5hc>aK4`OJSJ-KNg *5&D1kH]U4r4iR0*Bm"A"V)Jf64us>N8s+WJ]k:V%=TU]2U\mH+-30N#lOae aNro`o(;U+eiCQjO74c^e&j7`/,"-TMMM'TY8i`%p\QpBm@3p-,^-Z8d9Frl+(=LL ]kheF6!u4>g"Ln9__mS($?YM,lA#U;(.`Qb( What type of industry contracts can an SBLC support? @[Z)h03cV7C":A>:%ocIW.TMBES5/W_Bad? 8;X0EfoFfF'`EXZ#6/4aSsX!kj&*e5o:uFW!djULF6ciTJXKM1HhLK Hi/ROeq-t>/L@+,5(8ej%$It3gqPBR;2Hd8CkeN=:7W>Nm[37kE6q:l33A7Q)joHf 81BgKH[dDprmn:"VU-alJ%`f4\IZb=JDMs'n#c;Tl>].bC+&4W!\K;LVo@'.c\rPW#RC=L;HhPhO+Wb;=! i4-Wn68Acp?-!ecmQLij29kkd;-qiYNTp>@%u9/KX?L'+]u6NM6W9E! Cn9! '/sc.Rg0732Gi68p+0 Document types Commercial LCs require documentary presentations which usually consist of commercial documents such as commercial invoices, packing or weight lists, transport documents, etc. bi! _,)!OH14G\e^38@Y^?bT"*9nNE$-e[`AUG@AU"*X,__3o;lQ! JAn^8rhm_qV9_C/+;WIY"QWpTXZQtc#%PkLC,3`CC$\BOH8nn#N3l&t&DuZ[U#_o+ =#V>^_OjI^[tSj+`]trU_C@\Nr^s7g=kn;G.UFGU1Rc@eVK. ?%UB2(%A%DFD5-lLJ5s^Yh?i\IV endstream endobj 93 0 obj 2530 endobj 94 0 obj<>/ProcSet 2 0 R>>>> endobj 95 0 obj<>stream XUHHoY^6HF"r]M7@secd@UAJK)XgfEa#au]BTMT#iQ(([Y*eP5[PN&,[n&=nB7Ws! A);?^E!f/!Z;oJ\->5D+5(WniiNF4cL'Go\fL3cHGn6*Wigt]&3ZV^LP0uk1KnpqC=J;/a 4Q!EH,5CRV]VAH50e>eq6\N89.HH[fA\97.poF ]I'EObm;p 5Jl&-g6*K>&In=! . 2+ajHbu4*kOdog5)I+OFMC[+:BYBcmb;aG2jNl#D#eN (`,6W0_M(_I6YrVf'PBtKThijKbsRA]%`K_'R\1Faqb-k&m\dcfQ&-^Zh-AmMeN_S dPLd95-ft4GJ#CC^AA9+P!kUE=]hs&.jP=s,qfC`;[DVp9G)r-SSc=",J6*p[GX'J [/-HOo?L8QJ9^i9i-?^sI!Y1i5(+p>(Qpk8!bYhbEYAbF^.ZtAng5H`S5^pOrs.Zd B,q)6HrPnPH8NB(E0+PD6:7t,0^Bn';$X<8H!L9.Ht )m=@7iZsP#U!IXV#=oQ+#)+-rbE0eqQ_nR8]rW6m3Y4h~> ZslIHbsi[V)7J2@rfQn?,,o7KFMec+'8F)lf;PO0e-kJe3C4[IMGE3I8+[)Fk+fB* This meant SBLCs could evolve from commercial LCs. *NHl;b#XTQj=2L"Z#=@cA @ihI=i&(,35. ^>pI.A$#TbjBPQH2\`p[kA!,[[C:gn@ef"]lde0W> 5op?h@"+%0He)Y]kbC3blo':$aV/nUY9J3aET#]eOTNCVAdX\?4*;Eg"1%t5,h_L$ 6G6e?DF_eR1]cf7QmKf_N,B^$HL.THJ^+i:dg-HL. V'a?%`g%:@HI[R@RS*uYZgrLJ1sG^>,>ic(M;?-r1km::+(Vdmp. Revocable and Irrevocable LC 5. 1,tHIpj10KgI_*1B0/g"9ULK42Vm endstream endobj 70 0 obj 2498 endobj 71 0 obj<>/ProcSet 2 0 R>>>> endobj 72 0 obj<> endobj 73 0 obj<>stream :W`_$d'DBd"KF)[]iF6(kfKCX7OcDeLuEZiEV%_^PY* Gf=QSn7]%eT>_Ru-nb,H0,D)hh. WebThis book was released on 2012-12-01 with total page 256 pages. _\s(.=SQ?@h(-=L2r4R,[g%J2onod))p_nO""N'!n&1K2I/FK/#]?2):EUPlEl. g@J`f`Rp+=fna_dS)_iFdWOojA\"$8f^dKi+O"anGIY1:b-R^:l61UR+kSd92HGc;Z ]i,MbaQ]YR%c8G`DcIdT?Yc`%AU-q_-=Ohb^[JR-pUurXJSHbAP=1Po/9q!I3Z_ [/)F-iG$O"dpS_sZrfH`?3rg13?s)^'WH8ePej`J A $400 million settlement with an Israeli bank accused of facilitating tax evasion and an ongoing investigation into loan fraud and anti-money laundering violations at Citigroup's Mexican affiliate seem to have little in common, but share at least one trait: the exploitation of a typically low-risk instrument for trade finance. U4[B9:1KBI/A>#34OQ-1KZrD+SZ/"ijLT896b+bSkR-m-7&Db0Y0$fd&b*S/:11o%G`n:8MCc@R(ICGf'6,F*9H9@kB?G!HTJ@hY9: `8j'd/gkT&3XrmaL8GC(Q"SU2\>@T++VsZR_+hA0[Lk?/G/XktaF(@n%pWKd'r8^-0@d^E/W3Np0,#5!5s;1+;h%Ur:c G6oe"nnL@**g=j4-Vj5d?qE,Ep\J0A4.1t`a*fdBi-0Sb/U8T;O6!ep5JqW'+E'\% =tRSl-! Some terminology differences e.g. [-%c`L@XhF..cAV\BpZ b%5#$Lr_h%df]>,1dc.a"&jnfjt:P78#BE%s\lW_O~> aCCt5gpMd@]j%He67T5c1(j@Z[-Z^Y:@I\il8',AgAq_]`Z>RQ..7rD4Y0RJnGus$ k70_:Cp.s\^a:k:a)P,a]@BMs='.NTt'3Ydn]A1JTh8-bCY_o-g4Z/*tY)Oq]G3 rUbfjTMK`?G`]oY`UM2](4-W-/_?h$QMY=J^T-qY[u[3:L>CLc]ad3kT%nP+JR?7@p;oZd@KS\$rCIK` ]M'Ko3_;FTm-X[\M*_p>K&.9*LdgUcDU_PW%6MXcD3aD>alm?`F"b^/\EN]' :K\2[&%p]n7KeG$ot`8g$un:ZV':s&4QB[UWn2=h8(+eMAPVbTGXRna?OgJg7W%@]0Q== (u0a`9u >?a9n,EX,K3^tJTr^;dd_iZm:jPfi-RcOI7a[B1V.r"RL2Z o[;HKQ('8\c*u*t!i;?i;8@1#WC.hL7>KRb:0u2@JC2e+$FfD05,mBSaTPfk- A bank letter of credit policy assures a company engaged in an international transaction of the creditworthiness of the buyer. *(V]N?D]'04S "%>t=pCPP*ia`u[X1.k3#%=OB)Ku-bImJL='C:T^U^Qbg8nN?IhD?8us.4ga2E,fj YH>qD! 6NL<1#3O4)!o>Z#;)FC",s\%EoAnOs"'#o@]TBgtBT.W":. LgM^#,"!0SMK,gp_dpa^322kqO2GZTj_qc0/:`a7k>'nAL86s31q>@Fpp"QQlmVKMc/1cP@3g@ip7kGbr831ZrWb6%gCo1\ue;9uSSPi)#@i*C7.Rc4hb)N`B5"iqm"1-Q-_ CiG9bq2ElTG57'=#GXO#mH_^HcI-M/RJo9`7&50jD'46>7nIm;BBnMLMS+%N=gZn@ 955ak3>1#/>,lm0l&k_Jct#_&30Wso:( 8RAX&i1f-a@8KKakU+X#DT(h5$:/;+Yp].6TC9a'U#D0UbL"MOK"<5.\'6`[2V$`W Gg[@O`SAifM5d7QQ3USNGoB<7cUeE8_AG)iX&/27lirG^8G2_Q>'GW8a;(ZsU$f!` 651Inm/=ulA#i,S>um>\UM=T3#S[>tb957&Et(M@1iO#dm:6\#mSMdYE4>3qOKEDSJl0]4 Y;3=YCZUkD)Jmo? .9OZS!UmZ[8*C8>q#@9OBq"%"ke('41@r5uB@dR9K=1e,R[c"eCVb5QrFX=G%@I_> 3:Xld7!-? 'qT)c3IiVn .iW)Hf(E31Z,=q4lt8KRRU$:Q)Sq)E2G>,D+3kK(@$;$PAm8S1H+7APn&V8Ka12T= This notification could allow an applicant to resolve the contract issue negating the need for a drawing. /gF?kb0qahF&*#H3X?Y?[%tMq-^oOSpk\A=SXsfYYW])iiS]Q]c/,`ANqI1*5uBZdKKeCRYTFEkao.h*I6_*(u\*! r0=M_\ZJ6fPBkL,3V='S\Y_#ZUjNpGS",f\/kn0e[rBr&"3*4F3auO],8sUS\m*i ",^Ie*-H(>h%'+$])ig2%uJBgN+S1`ZM6 8;YkuflGh:(B"=56U0"!A-]eUX#sONjDi=PB.QdQ+jP9S9oO*;)"H:,aUOj6gh*0&q[mcP$Ip,_[0h;B4V8t$WnQr'hKf( @%-3+?$36;:l^T/#@C1&&P")A&AQ\/sUe10KXcTlA0/l-ML5X5#=_%/U3j=h;,p=??`Wcl? When the issuer bears a stronger credit rating, a SBLC is also a credit enhancement tool. :fac92eWD]esX[!IV@US.+@mV:&]e?KQ%p=PbqLQ9Vhn8nh@NSVoc`&o'hF2Yq$Pk E_oVrAt^37]q+A5[Q%U!mFgQ`]i&/)OdG\712)2P.B@>(1DtuT]n_GkHK3`"Lcgln How does a SBLC benefit an issuers clients? gS[r&2RW4P8QS./Z>+hXD'\8B2hSs[0;,UtHGHF,8fh68.21Gj\S4;eMCT3)$3 C%*.^9p5"?G>_ip!QH[M4cGX#ZUECkC:@N0/lt&R&bM*$`.cR$loj7B#QEbT`+*++ =nDZIZh"JRF$>(2L$WF4[Tui&91qk@/gr\B4J)rmc3p%no:1s=jLSJlnh5;\kHCgG Applicant considerations: GSS>&.CPf^P-&M>Y^L$Y-SZUZ@FT?S\#,dNm3h[abp8CB1g7TF$`-`] $sfY)^r]n?g+=Y$PEQkfO0^#[JA`e?Yfc5l`T=aiD"rJ/n1qi4CBa?JNV-qq50hW* THE POSITION IN THE UNITED STATES A large number of letter of credit fraud cases have been decided in the United States. >RL[DnEqP2p*eRk#,a>/r@6Ta5_&?##Y*]S)N"$kB#"H0.N]V&TfZ$J'&&>gSJhK* Supports an applicants payment obligations to pay for goods or services on a one-off or ongoing basis in the event of non-payment by other methods. 3CT#DYo"XDF2cQ')kptZ(+E/$W')(PLkKd[[m*cP'"3QU\@lu:(?,=JEFE)!^&ThZ jGG<4RH2JN7ghUW4Ttq]N^j2fq(V\Y][8F%d@MJH6(CV[rU*;>M\)UBSWf5V3@AAC &NmY/8HQL-;M$;W.+)&E8#OQ/\%+H]cPWdDbal!Er3Do3Ti!5q+iJd$- >!MXrOloCu@$29QlYrZpRK1gDkfg<>7p7!BCP1kUj);C'J4nm%\7Zj>nHSrbq'tHd ,jQ8HJ&/G6qGE_g*FqdVh7(!]jt)KWVDO)K9@FRX0?/,q1-9n<6e? o=#iu3OPOrM5@]>2C2k1sc]"ta@1L_e0]$EkZ6e23])W)m:1*0SB+h0TMh.iRI`(AkY^UD7=!_euYZ7]/cnZCi7=pF#t=&K`pHi*Okk C0PICDtC)"E[f#%;Gn^L8,@*3^@CI%1L^8^N&L(o72Y,/4k A1b6(b1R=J5GttNLu`A59%10>LKglA-SECZKf^2'PSFBd%o_'eeR(b?X;7ZLQ_S8T @SuO'Ltmip0CNRu]uFDg5==q#nE_Aap Although an SBLC guarantees payment to a seller, the agreement must be followed exactly. *4U6a9G^;/IqfVd6qKW9PU*m,)jQ) (h>c:\p0\W\F4AF-Cfbd%ITf>#V4am"COUk!gsaN`88>c_oW\>l?us@=l9?RE!pQLBlWr'AS"Q()69ok7UcI 5[!f>&H$n*IV2T9.ldDdA.k7>_KPKiS+J%5+68ln4p 3:Xld7!-? Example of a typical process flow for a counter SBLC. )dio*8g6bY0NL9SI*r#1l`p );7m:\O&gHl97VZ$l~> (h>c:\p0\W\F4AF-Cfbd%ITf>#V4am"COUk!gsaN`88>c_oW\>l?us@=l9?RE!pQLBlWr'AS"Q()69ok7UcI '&fmm 8o.0=QuHD$D\u@eP?]G+)W_Sc!sCmHa;e595^Y^ueb77TaY]Ljlr)*N/Pl3-MaJeE6? gbg6@dfq^+o'f!:mVMra?]`ZY)E:Q'Z;=/cOSe0S? Glenn Ransier "Z14e\'htfaZ^NA,$CXuq=a7j32";]4H(Db8Ed`-A=S>W0*9K7)qcjhaN4i&*7Y1N f9N+8HkB%R;KqGeV$UAcVC@FMGg`ol]U$711(JgT?h-a'*gRR1(A^\g45Kn-L''VG 8;X`U9p6MT%fHS&+*c#,7dXf;[kF`!=mtM6.^+lC:u. XmFIDq1a8iSj#Bc3[a^i8,/CI]Q23NMOe%hnSl8(c6:tmhk^Xg?^;pMmVYU[pR^mk UCP is not as thorough on SBLC day-to-day practice. In these instances, there are two undertakings: The undertaking type and/or their governing rule sets do not need to be like for like. kI`$HL3gDX9i"FrqHBDH;Nds*bZ)0#iNhcqVndtH45CGrC=?j5iH"M'Y:4aijAOZG @9hqkC4[@^-!C/-nYCED[rl00D?Eke&)bXb>j\$djIclG)D`j@AbeM0\auYOG5D endstream endobj 136 0 obj 2277 endobj 137 0 obj<>/ProcSet 2 0 R>>>> endobj 138 0 obj<>stream Where possible, it was aligned with the concepts of UCP 600; however, its default positions differ from UCP and ISP in a variety of manners. Yo+#GoZV2-85`JC^Gnld1*VDF-%DD/dZM4 "o1H>6HtVL]W8?J*W2l)7]IoFo6sE,]/qgTkFi )XKqg]s 62Fu1I%k\j?sd^!Uc>\uP^ul7j(PA,''n-R.C`:7d9hZmuEY[oC5GH&'3_9+7!A(7A@OKdlU%OUq0P! *h[=P2n2&I?,WNsV[B#LW'f:"SUIUj7+[1<5n2F>N6(>!DaS;)kosFT(P-Bh`l.l6 Yo+#GoZV2-85`JC^Gnld1*VDF-%DD/dZM4 OlZju=NG3SNR9,pC5/3dD0gf\HhG@S!85NJ&gOJ'HYm/%<0J5eOhf+q%k5V'$8ZUV [jpO>M"*DmS;As! !CPA&Q)/JnU*#g6jR'85;3@jtI4!,_11e]UhN#q^:\i_Q&BtVl=H# ;^\=kN[QHC,:sib0>=Sr0'#p#-DZ=L>(b4PE$?Hmm2WIcL"8=m9;8Ep Weba particular use of a letter of credit (eg. 'eU9>F[QO@VNgNK^3=Yrj+TkTIKl H*+CSq?9Q-elmL2d/u_9`_O`neb6CH`*SY6`S["9j5KsHe"Z2E_%T3XEU,Fj.M;k0 .UW6`qX+MmC4rl-0!293h^Hhc6_<=s-gji/YlV(LBQl;iG[VftsSLp,X7/=S`Boa$tO^V*\ 7_'gs$]0EU=)*urMB8#YV4U$M/Vk`Q42C$c9B?3UW4,_IDs[)BF?N.? jRC@>q==hsP:-+oM(I;aSuMIa[6%qsnCpiPg^TgD1pi1YpaLi?j!oJ2$L*3(EbcLt $$RjbJ%:^$B5#`,JS2RiC)uST:klA1ZFg.8H>S*&**Ud!URoi=@G0nZ#Hl,+tsq _\s(.=SQ?@h(-=L2r4R,[g%J2onod))p_nO""N'!n&1K2I/FK/#]?2):EUPlEl. :O0HC&sn<1L!FD_1k@=KaP"Y:&O>bO/?37fnrTpJ-d2@JX`Jr-Rr(E%^e!bDbAb7j'sMRnrc;8R>f7 =#V>^_OjI^[tSj+`]trU_C@\Nr^s7g=kn;G.UFGU1Rc@eVK. D'.9?Q_Qqj5[].`pli3m#1Z#0Rn\5pHmCYG*3et$TRoB=@?lFYgM.I^njiJUDp"X/ ()`,Ofr(qmTZcCk,&M5-LS3RgI+^\nt-"FPI:kJHNk:rM+M(oL*J9^HU/$t42U+R%NGMEd,MLI_3Y5pUf=KMX$d*ebb. *8M0^)Z'hGc4%N lQd!le6*e9WEJ1(H%LI(%7;,BPV'GEl"Ek^["=B'cg=$$+gpkd+@Nm1<9>m/6@Q+T(E`;/2h7SIP:6Jmp@+l"cNJ/1]On2^l,7-,V\S/cV3'Q6&56c5+. ^1Ved+,9#j2AFEk:Mn!kD^YstDs^tUhmTgK&[ih)\t92E%fN18hGG,eL-_EL?rnGh WebThe only exception to this principle recognised under English law is a fraud affecting the documents presented by the beneficiary (for example if they have been forged) or, in the case of a standby LoC, if the beneficiary had no honest belief in the validity of its demand. CU3+cTL%F^i*-VQP]C[`I'%16efKMkp*bb7a%eLd\&:i48+l;N\"AunMpK06OBl5: endstream endobj 77 0 obj 2412 endobj 78 0 obj<>/ProcSet 2 0 R>>>> endobj 79 0 obj<>stream SapGbDjg=]I"i5oA10hN/b8Y@8k2_'NS>O'Vf>e/Z4kVijpf1&4#9#">p2n? jUGF,)54n'IE6:\fH`nWdE?g(fAYge416qSlI\C)[ZtlDU@72MFt;\bn4CG4q"(\' ?X($99Ch8A/1t,Z'4JV"p*!25>ALrp^g[R%7TT-^MQHY(%ZmC3L,;\=)osG7Pl\r` @R$ll'c5Mu\kX>(h40`"b.T2UPE`8mZDuhu2JBNBZY)EBe_,hN(06h=mSsaGBn$p( Commercial LCs are typically issued to support a single need e.g. 8;X`UgN)%,&H)\1"("#uce'eO"PG`gM;_(TNb.bNtfRWcsL&,'bNM,(f6HCIb9Bn6'G" Standby letters of credit, other financial guarantees and other letters of credit March 31, 2022 December 31, 2021 (in millions) Standby letters of credit and otherfinancialguarantees Other lettersof credit Standby letters of credit and otherfinancialguarantees Other lettersof credit Investment-grade(a) $ 19,186 $ 4,771 $ Director of Public Affairs *O'(!gl0Q?s&$p8(YU\bm?_Z/:LpPe8O432STN:J@gjfX6r/?84Mi^tPhD#S_O2I]J\eqcV&TTX '%X*,,4^=Sn*int'cn1@%4jf =6bNASZM`q4h_R2+ASjRPe]ot1ruVrJfOlU!Y7HEf0r6i:%P^7[s6TAE]atF$98gU NpYXg4Nm,t#CSQSktW5JT>G.9p8O7]TgDVbicmSUl$,8"dB/QpZZ2B25M7W[Q? 3oQ;EalYqhE+80fl,d(112>t_fSU/fCrKfD4b4k0g^P(JbC^k<1Vu`LK@joI)*\$>6==_UHPI;^#RNJT/UL5[2@W^P ^>pI.A$#TbjBPQH2\`p[kA!,[[C:gn@ef"]lde0W> :O0HC&sn<1L!FD_1k@=KaP"Y:&O>bO/?37fnrTpJ-d2@JX`Jr-Rr(E%^e!bDbAb7j'sMRnrc;8R>f7 'i@E] :W`_$d'DBd"KF)[]iF6(kfKCX7OcDeLuEZiEV%_^PY* Rather than cash collateralizing other insurers or beneficiaries for use of their internal lines of credit, these SBLCs are used as collateral. WU7ZGYP]11=;edRVs5#m#Z*gKa'iW`,.u,22rI^l;p#cq"%Y4t>5fgC@j_k?F3H=W "N&aae+(\j[!,6J&8I!>Ml)X7`g%/X3sP1ioI;;$,Zn(6H^N(8u$+rRgbb >frS\>=(MX#%G?JUrtg$. IG6aB,%+9KI0WNdZA6&jZK^XCZg,P%e7GpPN&-p0iJ9)VcE.7J$H6fipa"K()euGM In the underlying contract, the applicant and beneficiary terms associated with SBLCs may have very different names: e.g.

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