Program Name

ISP98 The International Standby Credits Practices

Applying the Uniform Customs and Practices for Documentary Credits (UCP500) on Standby Credits (including performance, financials and direct pay standby letter of credit) created disputes between the parties. When calling a copy of transport document as an evidence of effecting shipment upon claim under standby may create disputes and open room for arguments that article 43(a) in UCP500 is not complied with i.e. documents presented after 21 days after the date of shipment. Good example of a disputed case when the International Chamber of Commerce (ICC) Commission decided that standby credits article 43(a) does not apply particularly where it is only a copy document which is presented, therefore, not a transport document. The question may arise, how about applying other articles. The ICC decided finally to look into creating a standard practice to reduce disputes for smooth operations in the International Trade Society.

Program Content:

  • International Standby Practices (ISP98).
  • Compare UCP with ISP 98.
  • Money Laundering under Standby Credits.
  • 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.
  • Cancellation.
  • Reimbursement obligations.
  • Syndications and participation in risks.
  • Conflict of interest and laws.

Benefits to You And Your Organization:

  • Understand how to apply International Standby Practices (ISP98) and when.
  • Issue such instruments directly without referring to banks.
  • Compare UCP 500 with ISP 98.
  • How to protect the business from fraud and money laundering.
  • Get familiar with Standby types.
  • Apply Bankers acceptances under ISP98.
  • Secure business when no alternative is available?
  • Identity the common points between the U.S. Commercial Codes and ISP98.
  • Avoid tricky wording / statements that may prevent the beneficiary from getting paid and also how to word the transaction to avoid unfair and unjustified claims.

Methodology:

  • Lecture-discussion and real life case studies.

Language:

  • English and / or Arabic

Duration:

  • 16 Training Hours.