lecture 13 Standby Letter of Credit.pptVIP

2007-06-12 Zhang Ailing Lecture Note 13 Standby Letter of Credit Structure Background Definition Comparisons with Commercial Documentary Credit Characteristics Types Procedures Specimen Game Rules Background (1/3) Originated in the 1800s, the United States In 1864, the National Bank Act of the United States prescribed that banks be forbidden from undertaking obligations under guarantees and that only insurance and bonding companies be allowed to issue guarantees. Background (2/3) In order to compete with foreign banks, the U. S. banks developed a new form of letter of credit, “