Saturday, 23 June 2018


CHAPTER 36 - DIFFERENCE BETWEEN STANDBY CREDIT AND BANK GUARANTEES

Standby credits and Bank (Demand) guarantees

·         Although it is not always easy to distinguish from the basic wording, there is a difference between a standby letter of credit and a normal demand guarantee. Demand guarantees are usually subject to the Uniform Rules for Demand Guarantees (URDG), ICC Publication No. 758. And Standby Letter of Credit is usually subject to International Standby Practices (ISP), ICC Publication No. 98. An individual will always need to check the transaction to ascertain the exact set of rules under which the instrument is, or is to be, issued (As per CDCS Textbook).

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CHAPTER 41 - CYCLES OF DOCUMENTARY CREDIT, DOCUMENTARY COLLECTION AND GUARANTEES ( Important ) Letter of Credit or Documentary Credit...