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Revised ICC Rules on Demand Guarantees & Standby Letters of Credits



Training investment is inclusive of Meals, Resource Kit & Certificate of Completion

P 16,880.00 / person - when you register and pay on or before March 24

P 18,880.00 / person - Regular Rate


WEDNESDAY & THURSDAY, APRIL 24 & 25, 2024 * 9:00AM TO 5:00PM
EDSA SHANGRI-LA HOTEL, MANDALUYONG CITY, PHILIPPINES


If you are involved in negotiations and transactions in PPP investment projects, international trade (Import & Export), and project finance structures, it's a must that you understand the use of Bank Guarantees and Standby Letters of Credit (SBLC as differentiated from commercial Letters of Credit).

Listen to the official interpretation from the International Chamber of Commerce (ICC) on how to apply the revised rules on demand guarantee and standby letter of credit practice with focus on practical usage of these instruments, new definitions and many examples to highlight right practices vs. contentious errors and common pitfalls to avoid. We will provide you with a step-by-step approach to let you understand everything with clarity and precision. You will learn about the main differences between standbys and guarantees and how to implement and interpret these ICC rules in your everyday business transactions.

This two-day comprehensive program will feature the ICC Uniform Rules for Demand Guarantees (URDG 758), ICC Uniform Customs and Practices for Documentary Credits (UCP 600) as applicable to standby letters of credit and also ISP 98, ie. International Standby Practices. You will learn how these rules can work for your business transactions.

Attend and we will give you best practices advice, present you with solutions, and provide you a comprehensive checklist of drafting recommendations and ready-to-use model forms for maximum learning.



Course Director & Lecturer



Mr. Pavel Andrle


He is a Secretary to the Banking Commission of ICC Czech Republic which he regularly represents at the ICC Banking Commission meetings abroad. He is also a Secretary of Commission on Commercial Law and Practice of ICC CR. He is author of the publications "Documentary Credits in Practice (2022)", "Commentary to UCP 500 (2004)", "Commentary to UCP 600 (2009)" and "Examination of documents under Documentary Credits (2015 Ed.)".

He has been deeply involved in the revision of UCP as a member of UCP 600 Consulting group. He has been closely involved in revision of URDG 758. Presently, he is a member of ICC Task Force on Guarantees, also a member of the new Global Supply Chain Finance Forum.

He has been involved in the revision of the Incoterms 2010 as the assistant of the drafting group member, Mr. Miroslav Subert and also in the last Incoterms 2020.

Pavel Andrle is an ICC international trade and finance lecturer in Poland, Albania, Slovakia, Croatia, Ireland, Lithuania, Latvia, Bulgaria, Georgia, Greece, Turkey, Russia, Mongolia, Uzbekistan, Azerbaijan, China, Singapore, Cambodia, Philippines, Nepal, Vietnam, India, Sri Lanka, Bangladesh, Sierra Leone, Zambia, Uganda, South Africa, Nigeria, Malta, Trinidad, Dominica, etc.

DOCDEX Expert of ICC Centre for Expertise with ICC International Arbitration Court, ICC Paris. He is an active trainer under Global Trade Finance programme of IFC (International Finance Corporation).

 

Who Should Attend?


  • Business Owners who need to use bank guarantees and Standby LCs in their business and trade transactions

  • Exporters/ Importers who use bank guarantees and standby LC for their import/ export

  • Bankers with responsibility for trade finance & guarantees

  • Banks' in-house legal counsels and lawyers involved in subject matter litigation

  • Lawyers with clients in int’l banking, trading and finance

  • CFOs & Treasurers who handle bank guarantees & oversee import/ export and trade transactions

  • Professionals negotiating for procurement of supplies and installation contracts

Course Outline


Day One, 24 April 2024

Topic: Demand Guarantees and Standby Letters of Credit with Focus on Practical Usage of Independent Banking Security Payment Undertakings

 

Practical seminar on bank guarantees and standby letters of credit – the relevant ICC Rules in particular. Workshop will focus on practical usage of these banking instruments and main issues.

 

Topics:

Introduction of Demand Guarantees and Standby Letters of Credit:

                  o Introduction to independent undertakings 
                  o Main features of independent undertakings, independent undertaking v. accessory (suretyship) undertaking 

                  o Demand bank guarantee v. standby letter of credit 

                  o Main types of independent undertakings used in practice: 
                                 o Advance payment guarantee
                                 o Performance guarantee
                                 o Retention money guarantee
                                 o Warranty guarantee
                                 o Payment guarantee
                                 o Shipping guarantee
                                 o Other common types of guarantees

 

Bank Guarantees Operations

                 o Main issues in demand guarantee operations from practical point of view:
                                 o Wording,

                                 o Issuance, Avising

                                 o Reduction, Termination
                                 o Claims
                                 o Extend or Pay claims;
                                 o Examination of presentations

                 o Practical examples, common mistakes in practice and how to avoid them

 

The new URDG 758 - Rules for independent guarantees in practice as further explained in ISDGP (International Standard Demand Guarantee Practices)

                 o Application of the Rules
                 o Direct v. Indirect Guarantee - Guarantee and Counter-Guarantee 
                 o Issuance of bank guarantees, content of the instructions and guarantees,
                 o Advising of guarantees, Amendments, Liability of the Guarantor, 
                 o Demands under the URDG 758 guarantee, Extend or Pay claims,
                 o Examination of demands and documents, Transfer v. Assignment
                 o Transfer under URDG 758, Assignment under URDG 758
                 o Disclaimers, Governing Law and Jurisdiction
                 o ICC Banking Commission Opinions and DOCDEX Decisions related to Guarantees as per URDG 758
                 o Other questions, debates 

 

Day Two, 25 April 2024
UCP 600 (Uniform Rules for Documentary Credits) as they apply to standby letters of credit, 
ISP98 (International Standby Practices)

 

Topics:

Introduction to Standby Letters

                 o Standby Letters of Credit - evolution of the instrument

                 o Main difference between commercial and standby letter of credit, Cycle, main stage

                 o Main characteristics of standbys

                 o Issuance, advising, confirmation of standbys

 

Standby Letters of Credit according to UCP 600

                 o Standby Letters of Credit under UCP 600
                 o Issuance, advising, confirmation of standbys as per UCP 600

                 o Proper terms and conditions of standbys as per UCP 600
                 o Examination of presentations made under standbys subject to UCP 600
                 o Relevant provisions of ISBP 745 to standbys issued subject to UCP 600
                 o ICC Banking Commission Opinions and DOCDEX Decisions related to Standbys issued under UCP 600 


Standby Letters of Credit according to UCP ISP98

                  o Standby Letters of Credit under ISP98 
                  o Issuance, advising, confirmation of standbys as per ISP98
                  o Proper terms and conditions of standbys as per ISP98
                  o Examination of presentations made under standbys subject to ISP98 

                  o ISP98 Model Forums and how to use them


Standby Letters of Credit according to UCP600 V ISP98

                  o Standby L/C under UCP 600 and ISP 98 - side by side comparison
                  o Standby Letter of Credit or Bank Demand Guarantee? 
                  o Questions, debates 

 

ICC Uniform Rules on Demand Guarantees - URDG 758

The revision of ICC Uniform Rules for Demand Guarantees (URDG 758) creates a new set of independent guarantee rules for the twenty-first century. The new URDG are clearer, more precise and more comprehensive than their predecessor, URDG 458. ICC Banking Commission developed a supplement to URDG 758: ISDGP (International Standard Demand Guarantee Practices) in 2021.

 

ICC Uniform Customs and Practices for Documentary Credits - UCP 600

Many standby letters of credit are issued subject to UCP 600 despite the fact that UCP 600 have not been specifically designed or adjusted to care for the standby letter of credit particularities. This fact might create many practical problems. One should be, therefore, well aware of those possible issues to avoid their impact in its own transactions.

  

International Standby Practices - ISP98

The International Standby Practices was developed under the auspices of the Institute of International Banking Law & Practice, Inc. ISP98 provides standby users with rules designed for standbys, as opposed to the UCP, which was not. Because the UCP was designed for commercial LCs, considerable care has to be exercised to avoid difficulties and traps when using it for standbys. ISP98 avoids these problems and anticipates issues that commonly arise under standby practice. ISP98 can also be used for independent demand guarantees.



Attendees from the government are exempted from the P2,000.00 limit set by COA for attending training provided by the private sector based on Department of Budget and Management Circular No. 563 dated April 22, 2016.

Attending this training is not covered by Philippine Procurement Law or RA 9184 based on its Revised IRR’s Section 4.5-b. which classifies training continuing education, conferences and similar activities as "non-procurement activities that shall be governed by applicable COA, CSC, and DBM rules".
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Contact Details

Contact Person: Micah Lara Jalos
Mobile Number 09399148689
Telefax: (+632) 8842-7148 or 59
Email: micah.cgbp@yahoo.com

Account Name: Center for Global Best Practices Foundation, Inc.

Metrobank: 495-3-495-504-418
Unionbank: 0013-3002-7702
PNB: 1477-7000-0961
Landbank: 3832-1015-82

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Muntinlupa City, 1780, Philippines

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