An Introduction to Letters of Credit phần 4 pdf

39 List of National Export Credit Agencies and International Development Banks Export Credit Agencies Following are some of the most frequently used Gov- ernment Financing Sources. Australia Export Finance and Insurance Corporation (EFIC) Austria Oesterreichische Kontrollbank Aktiengesellschaft (OEKB) Belgium Office National Du Ducroire Creditexport Brazil Instituto De Ressequros Do Brasil (IRB) Carterira Do Comerico Exterior-Banco Do Brazil S/A (CACEX) Canada Export Development Corporation (EDC) Denmark Eksportkreditradet (EKR) Dansk Eksportfinansieringsfond (EF) France Compagnie Francaise D’Assurance Pour Le Commerce Exterieur (COFACE) Germany Hermes Kreditversicherungs A.G. Ausfuhrkredit-Gesellschaft mbh (AKA) Kreditanstalt Fur Wiederaufbau (KFW) India Export-lmport Bank of India Italy Sezione Speciale Per L'Assicurazione Del Credito All Esportazione (SACE) Mediocredito Centrale Japan Ministry of International Trade and Industry (MITI) Export-Import Bank of Japan (J-Eximbank) Korea Export-Import Bank of Korea Mexico Fondo Para El Fomento De Las Exportaciones De Productos Manufacturados (BANCOMEXT) Netherlands Nederlandsche Credietverzekering Maatschappij (NCM) De Nederlandsche Bank (DNB) New Zealand Export Guarantee Office (EXGO) Spain Compania Espanola De Seguros de Credito a la Exportacion (CESCE) Export Finance Sweden Exportkreditnamnden (EKN) A/B Svensk Exportkredit (SEK) Switzerland Export Risiko Garantie (ERG) Taiwan Export-lmport Bank of the Republic of China (Taiwan) United Kingdom Export Credits Guarantee Department (ECGD) United States Export-Import Bank of the United States (Eximbank) Private Export Funding Corporation (PEFCO) Overseas Private Investment Corporation (OPIC) U.S. Agency for International Development (AID) U.S. Department of Agriculture-Commodity Credit Corporation (CCC) International Development Banks African Development Bank (ADB) Inter-American Development Bank (IDB) International Bank for Reconstruction and Development (IBRD) (The World Bank) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) [...]... are satisfactory to it When the bank’s customer applies for credit, the bank must decide whether it will assume the credit risk and other risks arising from the issuance of the Standby Letter of Credit for the account of that customer Once the application is signed by the customer and the risks to Citibank are accepted by Citibank in reliance on the application form, the Standby Letter of Credit is issued... the Applicant to the Beneficiary Standby letters of credit are also frequently used to effect direct payment to the beneficiary An example of the face of an Application form for a Standby Letter of Credit is shown on page 51 (Illustration 15) “Guarantee” and “Payment” Before discussing the variety of purposes served by Standby Letters of Credit, let us review the two basic types—the guarantee type.. .LETTERS OF CREDIT Standby C H 8 A P T E R 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, and Standby Letters of Credit, used for other purposes as discussed in this chapter 50 Commercial Letters of Credit issued to pay for shipments normally require that the Beneficiary present current bills of. .. bank, and whether the Beneficiary can comply with the Standby Letter of Credit terms and conditions in every contingency for which payment might be owed by the Applicant to the Beneficiary The Applicant is obligated to the bank for any amount paid under the Standby Letter of Credit The primary risks for the Applicant arise from the fact that the documents to be presented under a standby Letter of Credit. .. bills of lading, insurance certificates, commercial invoices, etc Standby Letters of Credit, on the other hand, are not typically used to pay for a current shipment of goods and, therefore, documents evidencing a sale and shipment of goods are not required Standby Letters of Credit are frequently used as a form of payment guarantee in the case of nonperformance by the Applicant of a contractual or other... expected to draw under the Standby Letter of Credit to obtain payment when due on the underlying contract The payment type Standby Letter of Credit functions as an immediate, no-default payment mechanism, under which the beneficiary receives the funds of the Issuing Bank, rather than the Applicant What Are the Risks? There are risks in any commercial or financial transaction With a Standby Letter of Credit, ... issued according to the application’s specifications Illustration 15 – Application and Agreement for Irrevocable Standby Letter of Credit1 51 Application for Standby Letter of Credit Citibank, N.A., New York, NY 10 043 Letter of Credit Reference No Attn: Standby Letter of Credit Dept., FLA–1, 2 / A Applicant (Name and Address) Advising Bank (Name and Address) Beneficiary (Name and Address) Amount... Date and Place: _ This Application is for the issuance of a standby letter of credit under and subject to the terms and conditions of (select one): ❏ ❏ ❏ The Agreement for Standby Letter of Credit attached hereto: The Continuing Agreement for Commercial and / or Standby Letters of Credit dated _ ❋ Other (describe): _ Subject to the... with customer's signature and account manager's approvals on page 2 of this form Page 1 of 2 Front page only 1 Illustration 16 – Standby Letter of Credit – IN LIEU OF A CONTRACT PERFORMANCE GUARANTEE 52 Citibank, N.A New York, New York Irrevocable Standby Letter of Credit November 26, 20_ Archer Construction Associates 45 6 South Street N.W London, England Sirs: At the request and for the account of Construction... Issuing Bank substitutes its creditworthiness for that of its customer, the Applicant The Standby Letter of Credit entitles the Beneficiary to payment from the Issuing Bank, up to a stated amount, on presentation of strictly complying documents required by the Standby Letter of Credit The primary risks for the Beneficiary are whether the irrevocable commitment is given by a reputable and financially . has granted credit terms to the importer. On an acceptance Letter of Credit, the issuer’s and confirmer’s duty to honor is to accept and, at maturity, to pay. Financing to the Beneficiary and the. a discount to any bank. A Banker’s Accep- tance can provide an immediate source of funds for the Beneficiary and can simultaneously defer payment by the Applicant. Banker’s Acceptances are regulated. 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