《国际金融》11.pptVIP

Lesson 11 Documentary Letters of Credit Learning Objectives Definition Procedures Parties involved in DC Advantages and disadvantages of DC Variations of Letters of Credit Revocable or Irrevocable Revocable: the credit that can be changed or cancelled 可撤销的 Irrevocable: the credit that CANNOT be changed or cancelled 不可撤销的 Unconfirmed: a bank (other than the issuing bank) gives no promise for the payment of all drafts 不保兑的 Confirmed:保兑的 Documentary Credit Procedure Documentary collection vs documentary credits Collections exporter has no guarantee of payment driven by exporter (principal) exporter receives payment only once remitting bank is paid by collecting bank unless a bank purchases the bill risk borne by exporter Credits exporter is guaranteed payment by the importer’s bank if he can comply with the terms and conditions of the DC driven by importer (applicant) exporter may receive payment immediately if the documents comply with the DC terms risk borne by issuing bank Variations of Letters of Credit Revolving credit 循环信用证 Transferable credit 可转让信用证 Back to back credit 对背信用证 Standby credit 备用信用证 Red clause credit 红条款信用证 Back to back DC: difference from transferable Back to back middle person’s bank is liable for back to back middle person requires a credit facility involve 2 credits more flexible Master is not designated as such Transferable credits transferred, middle person’s bank has no responsibility no facility required involve 1 credit allows no alternation in terms other than Article 48 (H) UCP Master has to designate ‘transferable’ In India, 200% facility facility - mortgage recourse - (my comments, but don’t use in lecture) when the buyer is not paying, issuing bank may not pay The middle person/first beneficiary can substitute his invoices, drafts. It is of paramount importance that the identity of the ultimate buyer not be disclosed to the supplier as the middle person may be left out of future transactions * * Documentary Credits Lett