Program Name

Principles & Practices for Demand Guarantees, Sureties & Standby

Demand Guarantees differ from Documentary Credits. In unusual cases, Demand Guarantees are called only if principal has made default. However, the guarantor, like the issuer of a documentary credit, is concerned not with the fact of default, but only with the claim. Standby credits are already governed by the International Standby Practices (ISP) if same applied to the instrument. Demand Guarantees have been developed for almost all purpose financial support instruments, and are used in a much wider range of financial and commercial activities than Standby Credits. Accordingly, while some of the standby credits are technically within the definition of demand guarantees, it is expected that the issuer of guarantee and sureties will continue to apply local commercial/contract law.

Program Content:

  • The United Nation Convention on Independent Guarantees and Standby Credits.
  • ICC Uniform Rules for Demand Guarantees Publication 458.
  • International Standby Practices (ISP98).
  • Laws governing Demand Guarantees and Sureties.
  • Protect yourself from Money Laundering and Fraud.
  • Compare Commercial Laws with ICC 458 ISP 98.
  • Types of Guarantees and Sureties.
  • Shipping Guarantees.
  • Claims and Demands for Payment.
  • Extend or Pay.
  • Reservation of Rights.
  • Conflict of Interest.
  • Compare UCP with ISP.
  • Compare some of the commercial laws with ISP98. Problems in applying the UCP on standby and other types of guarantees.
  • Scope, application, definitions, and interpretation of the ISP98.
  • Responsibilities and obligations.
  • Parties and Issuers.
  • Amendments, Presentation and Demand for Extension or pay.
  • Closure on expiry date.
  • Examinations.
  • Notice, preclusion and disposition of documents.
  • Transfer, assignment, and transfer by operative of law. Conflict of interest and laws.
  • Cancellation / Reimbursement obligations.
  • Syndications and participation in risks.

Benefits to You and Your Organization:

  • Understand commercial and contract laws in various countries.
  • Understand the different types of demand guarantees.
  • How to avoid money laundering and fraud transactions.
  • Understand the difference between demand guarantee and surety.
  • Handle foreign and counter guarantees / sureties.
  • Understand how to avoid fraud and money laundering while handling guarantees.
  • How banks apply charges and ways to reduce expenses.

Methodology:

  • Lecture-discussion and life case studies for discussions.

Language:

  • English and / or Arabic.

Duration:

  • 12 Training Hours.