Advanced Guarantees - eCourse

In this lesson, you will explore the basic tenets of a bank guarantee, including how to:

• Identify key elements of direct and indirect guarantees.
• Distinguish parties to a guarantee and their legal relationship to each other.
• Analyse the methods for dealing with multiple beneficiaries and applicants.

In this lesson, you will learn the importance of bank guarantees in international trade, including how to

• Identify the parties that can issue a guarantee.
• Distinguish the various types of security instruments.
• Explain a non-documentary condition and the risks it involves.

In this lesson, you will learn the different rules in the market, including the historic development of URDG 758 and its predecessor URDG 458.

You will also analyse the most important features of the rules, what they cover and how they are applied.

In this lesson, you will gain an understanding of the amount and currencies that are used in a guarantee and learn to distinguish the differences among currency of guarantee, currency of payment and change of currency.

In this lesson, you will learn the steps in the lifecycle of guarantees including how to:

• Recognise how and when a guarantee comes into force.
• Identify the possibilities for termination of a guarantee and the difference between expiry date and expiry event.

In this lesson, you will learn what assignment means for bank guarantees including how to:

• How to correctly assign the proceeds to a third party.
• How to assign the rights under a guarantee to a third party.
• Identify the requirements for a correct assignment and the process of reversing an assignment.

In this lesson, you will learn how to claim under a guarantee, including:

• The minimum standards for examination of documents.
• How to distinguish the preliminary requirements for an extend-or-pay request.
• What to do if not every documents is available, or if there are discrepancies.

In this lesson, you will learn how fraud can occur in a bank guarantee - and different ways to mitigate this.

In this section, we will take a look at two sample case studies that show how simple solutions can remedy problems often seen in this sector.

This section will test your knowledge on what you have learned so far using self-assessment questions. Please note, this is not an exam.