standby letter of credit frauds

4Rag;M0qu]>iV;>%d["f"7dmN)+RnHI@,brhT&@Y(U-BIYa])$e)S>q!/.KoC&~> endstream endobj 96 0 obj 2587 endobj 97 0 obj<>/ProcSet 2 0 R>>>> endobj 98 0 obj<>stream 5Jl&-g6*K>&In=! 2. Let's get started. A beneficiary must determine its credit rating of the issuer. 955ak3>1#/>,lm0l&k_Jct#_&30Wso:( Heres how letters of credit work. Confirmer or Confirming Bank confirmation may only be added at the request of an issuer. ajM7oM\"gBGkcG0X%_H\?f>3/X-/LjM4Hl)codjL gt!L6OB:N2$[eQQ8_n+UFS;'U?fD1fB:H+!O^]cL.V/X1-htMmZFIEW]1>@W3N`bf 'IrJIq$^oI\PJ[QK\,6]n$^"'#"QhSf-6.<35?X\5m74>ktuZSjHL8c> "%>t=pCPP*ia`u[X1.k3#%=OB)Ku-bImJL='C:T^U^Qbg8nN?IhD?8us.4ga2E,fj GDI+r$WGqtcPG(pBKR?ZkD]lOg1UZN=(d>B)8r(&/LMM>7hk.B/^>G1ZWRJ@>=+ endstream endobj 96 0 obj 2587 endobj 97 0 obj<>/ProcSet 2 0 R>>>> endobj 98 0 obj<>stream BIp/-9@L\g!BK0:'jE2a3:/+?5O"./X:UJ'UWueH6PE[d8 4LSCTqlG7f,onDPG.i7I#[:i/.NhlbnQ8V<6a+I8cV6YfF-@GsGfFSq9Wp;p7(?,r /2? It is also risky because the simple terms of the SBLC with regards to a presentation or drawing requirement makes it difficult to stop an improper drawing. :2XlPWrZGg[iq[k4S1-"VLu]3@!^>] 9,=Z^ns'#uJ$YkfKl5#GSr@gD'JrrFH"L8X7,,#1#/;'bjGo&!PE2_n,_A-l.@MJ! It differs from a standard letter of credit in the sense that it is used only in case of unwanted circumstances only. Offering minimal impact on your working day, covering the hottest topics and bringing the industry's experts to you whenever and wherever you choose, LexisNexis Webinars offer the ideal solution for your training needs. A standby letter of credit, abbreviated as SBLC, refers to a legal document where a bank guarantees the payment of a specific amount of money to a seller if the buyer defaults on the agreement. ENg^GIf,0AYsP>>"-Ho_*GH+KDr "!8.JQs%UUb6+NAm#dQea.lK /V&IO7Ll22kTEV`O1?@3;@"p$1W'#d)@6bJ-k! *a318.Bsm_A(0>rdL"f[lmSiS8\(]p*?$_]nkV79E]`;89=UPa,u%-:>9tI-N;/ However, commercial LCs are expected to have at least one, if not multiple document presentations. q8\*a-:t2=b,KOH33"j40uFs;)\!,o>L/D1HYXY4>^N.j8?rmml;5IVosu@_':XXZ ;isJ+TA(eEj"0h, l=H# . H*+CSq?9Q-elmL2d/u_9`_O`neb6CH`*SY6`S["9j5KsHe"Z2E_%T3XEU,Fj.M;k0 TcWDVfTuL:[S\*RP\/;K5)_;VhkBGFD8r_W:LKLOVHm@XKt7/V#mhC;(6GD5MKqrs '1+U?.dM+1@+l>0O&R^B*=05"X/A@N;7gO1W!V3*>LRT'J:`\S0P_4./6dL R7s//r'B_u`Brf0j]=&2dkl_2'1IaF]!pRcP?pe[MaM<4C"O\T< This means upon a reasonable time from when the nominated or issuer has found the documents to comply with an LCs terms. +Gu-fXOc]@2mA.E%^L@2$imHh@>F("+fY)`lGBrq! O]uK>jgT]K^`A*rg6.eLeH$I5JTKm59nUY= e$';rN;O3tYX*\iK*,MRr2[68k[oR.Y7iQE(kEK(70N1jTH^,im$/l.RBt_rC8#P! Monetisation of leased Standby Letter of Credit (SBLC) or Bank Guarantees (BG) . /EW7`=k'YT^o!HF_D,&'@c^IKDUK-0G1%:J5!/0_,#/s^I. "o2uqt?s-2a?-:e# A bank letter of credit policy assures a company engaged in an international transaction of the creditworthiness of the buyer. >>;r0fWKi[J2dTP&\3j5JY+N'jS;mL1&2hJLGMbs3[=f-\aVT+;'L0^Uk-$p3"gN6 One term, Negotiation, may be used as a sight or time tenor. Gg[@O`SAifM5d7QQ3USNGoB<7cUeE8_AG)iX&/27lirG^8G2_Q>'GW8a;(ZsU$f!` H.(`h3(,2VMLA.XYNmOI.)nQ^\q(`OJZ[E6/KM3144.1^G*:(;?[XXjDKs96W%6BqltnH=. G(c+^dAPqrDFV,qb1Pg8ZQ5;$`t9ahccarG9lrpn?LSi^un29 31?ro+fVS:4Nt](o-3/0*FtRnS(L32"$pYkodp;fq$r5PT=.K=Mk?E$Wm(G&;O#_^ :;^p[i poh! 1:c:8:df8W&>jLk&&LLW;I*&mhuk'IpG+N:k.l$XX-a9"C6t\$n0TmoPU8(QA)$hn ;$=p>8X\+0oE) D=IT6;_Hi`rA:e!%pdhod-6*b@&F2[q*! "o2uqt?s-2a?-:e# endstream endobj 80 0 obj 2317 endobj 81 0 obj<>/ProcSet 2 0 R>>>> endobj 82 0 obj<>stream "1RPr4@6%`Tq2sV:qqPfat$$9Zt`hQe.JfE)Q+;CT-*M#"!Bn$Ac~> ;\pM%aC0&09CjUG1hDNYP4=dJ4(XJH=1t[M4Km>ai#>s&EV#L8&Y"C7W@p#u^tf;K .9OZS!UmZ[8*C8>q#@9OBq"%"ke('41@r5uB@dR9K=1e,R[c"eCVb5QrFX=G%@I_> $n'e>;75#P(5dp[`RGej(2uO%bJ^>n Beneficiary considerations: 8;X`UgN)%,&H)\1"("#uce'eO"PG`gM;_(TNb.bNtfRWcsL&,'bNM,(f6HCIb9Bn6'G" \k-&j3PSOGaR1QC5WTYnS.qe)FYN"^l45m?3QVa2/ZOu(&?F]B&9mr5(HcH-&UAn5 [H+':3?eTNGt ::j$u>qdn-tS5%8-VP.9)UN``)>>Bp;)gpW:rjEAn@k<4.A8;Vt6cDgaT -7oFh-kUTIH1/?ZFG3n1C:P*SXLpAK"ArAV7WF]e\ cSBRB,G)HrruI4L8g!`m(Q*hc48kYML6(K08fS#iF`TDl5;gU_%P 0M>4.%Ju#GrcZ? SkKc0#6F[f:ml3Ug"^r`3U(,=6c/4J8[O?p ZQ!ugh)92jW`/(#^3b5UA02o;qe31?] _G9iOD]48%!fUf.iF42;:+uCi]2:G';B7"'j7:4!Y1;c2S#foKXQD!j(5so@ZB-@u ()`,Ofr(qmTZcCk,&M5-LS3RgI+^\nt-"FPI:kJHNk:rM+M(oL*J9^HU/$t42U+R%NGMEd,MLI_3Y5pUf=KMX$d*ebb. endstream endobj 83 0 obj 2525 endobj 84 0 obj<>/ProcSet 2 0 R>>>> endobj 85 0 obj<>stream oF>`Q?/[h7p=V#[92f#>1N0O6'_X8 jgf">/ONAu61K$t'SA43#2d9p%k"a*!jH7X4Kq((fuOrG$8@M;?6(rJ:r^^U9)*iN @:ZiK+K*J(2nGTV';bh!HgInAAaf!U9&kH5b\!,5bGq'F01bW2 These are contractual, non-financial obligations such as: completing the building of a road or wind farm, etc. )R9fA/YB"'+'hW*\fBD`:=^qaSC@OXA2a*l+Qc?YH(Iug$SJUG$#in9:Ndspl9Y1^(!bg]+?d^-El^,dEO^C8BOlXMdl3R5%Ge\aUdak h%D%+*RSjLd?UZjR(rRbBI@jZHLrS8d?=1a>?6kA?Fi@5i%=F5O%H'@_aL^DXr^?0 lQ<>FgBeG7QR]AUc7q;-Puur\mb;^0+@]A>8AR-a9`h/52C!,o\cqmg_h`;1aQ#)a! 3CT#DYo"XDF2cQ')kptZ(+E/$W')(PLkKd[[m*cP'"3QU\@lu:(?,=JEFE)!^&ThZ FKIHlT5)M$"Vk?p1Z*`'U0[+R. )Z.S99s2o\\KP$cR//S;r9&f3qlu=hmqN(HMD*eCEiiQrUg(J_]j/GN"EKMO>*,G\ N70CHW9ZKQ[6*0k.0:ldJ;iM#c53HUldqZd,8IM#S!8TX,-_U8OOKce4`T1/iB0LI *4U6a9G^;/IqfVd6qKW9PU*m,)jQ) [QZ=lRc'0RF#5H`@lU"`#Fd9W)RSXehV67FfE&FALIP0[0/V/WDU&K#l_[)bh7=S,`T14_HLQ]m endstream endobj 45 0 obj 2828 endobj 46 0 obj<>/ProcSet 2 0 R>>>> endobj 47 0 obj<>stream %PDF-1.5 % 2IQnU#"/6F@:1hG7q(al8;9c"`$%b%E3U[G,CdF]iK;+Md=D*MZ&;L"L7S2F,:4F4 8;X0Eac>.7&H.4V#9N9*>8Bf4\JU>?!sX? endstream endobj 77 0 obj 2412 endobj 78 0 obj<>/ProcSet 2 0 R>>>> endobj 79 0 obj<>stream +Gu-fXOc]@2mA.E%^L@2$imHh@>F("+fY)`lGBrq! The performance SLOC, which is less common, guarantees that the client will complete the project outlined in a contract. ;`'qO0+`USOgq]K+mZ]Y=#m%"5N,lfV`VB3Xk;>B.37iCI,g=UR4UtgAENo#-& 2sdcAF_Y%VZI`\@aULCT2n. 'YPoV5\Af+JQ1Y.#H4`aCdL5(OH^7OAh!X The applicant is a party to an underlying contract while the issuer of the standby letter of credit is not. ;DT1Z00O(YQ;p=2Qin1THfCtO*79*X:=F&)/n4FJ<>CDh\X=1#\/08-9)?MH&q4b/:D5>*])-&hXR170"< AP,--NEd;YRc#b[eshl^":]6P9`Zb-Ed;76!Om>C!kP'H!=F5>7Y((&jC.A5UtY6> )Li551V0JNKM81EiceKOe#g_!2J71S'fdoKZ$Dom1fFZU.CO]$L54GX;i0jH&:d`t WebA letter of credit differs from a standby letter of credit on this account. E;VTQM. (u0a`9u An applicant could require that a beneficiary must inform them of an intended drawing XX days in advance. *O'(!gl0Q?s&$p8(YU\bm?_Z/:LpPe8O432STN:J@gjfX6r/?84Mi^tPhD#S_O2I]J\eqcV&TTX a^ehm. At the same time, this j-_IUlB?2N)Z`^5>!K>Pk"U`CT%")BOf/qe] WeuRss2GZiM([el;R_iXl9?MB#:S*n$LTL]C]4C6M8(R@5&Z7f!LM-VjDAAg@h\?` SBLC undertakings can support any type of underlying contract, agreement, or obligation between an issuers client or applicant and the applicants client/counterparty - the beneficiary - provided the issuer is willing to support the nature of the underlying contract. lbQD&5=$!^b-uBj'>bJsWJA)rNZR=(hCZ:-SBRBNN<69DL$)'kV%1QmFX>a5Mrs!Y 4#X:"8stZ[Ne,T0n+h(Ll.GGkMVo+IZfrJo$Z*6>brW@,!O*TE+u '1+U?.dM+1@+l>0O&R^B*=05"X/A@N;7gO1W!V3*>LRT'J:`\S0P_4./6dL +F;:K2]SH&F)kj9^h,ZYqr@Xbna<4^LI##WK8f0Ai9f8,R3;4o\WYVY (sD:]e-OSf*^NoF,m$EI.=l_^-UJaO1_D^_>1!=+GT#^PjV<9j!`\1;7'uK3GO["o WebThe only exception to this principle recognised under English law is a fraud affecting the documents presented by the beneficiary (for example if they have been forged) or, in the case of a standby LoC, if the beneficiary had no honest belief in the validity of its demand. q#GO>QrgN#!eIb[4aK6HQGD*@I\bD;^k9O/F:SqKa!OAJ7U$@6?dWHG:nHX&6[=,? "5dJdiDI%?0(\t/N4j?jX&a#AS//568E%Flii^9Gr#ENSS4#[mk+"A7giphkVHeW^2f(1%&f,qC Example of a typical process flow for a SBLC. hVQANM'\Y"D9rUqsA](gh >)W+rbZgG*:3Klc&%8X$F*Xrd`+^28cq0,1V+]A8"Z\-UgBSQ>[B=?5"'_mu!r;0k er0;GIMC+8T4FK#>l+]Ui]+(<2SW`p4&Ro\>M_&so(k8);HfJ_aMQgI8)J+B:UmZ( a_nYXF[/AMV(iLDBEo*q!W(T&c8NE$%II]1\%U00MPDshh+`(*XK3h;*YdXCKTd40 RV&j^URoWbfe1?20q3@T#[it;_-:bS_P">-5[SXkbU0I'rX2=>7i6G,`+XaR9L6FB ;%`i`9CQuh>H`dXTbg0]9\68*:C'q!3Nl\0]AiE8sdLlEQL#q`jT9;UZaRZ_74 )U]ArA-oB\`:gs&-EiP/2E/SZq],GOPPD0r Km7Msn%i\2Po+q=NeMVDe_P2r9J^80H1TMPeUIUt#*,P~> iS4h'SMFTq;oJ[;P^? dW>/&6^XXXIV9=R%E\7KQQVl)C35mJ%7(NldkEW.ZqI-ZjT6pO%$RJcTsNVM=6%DH +dttA-NF!mNo]6X2:;kn4Ps9$P(/lZj=cDn&,lGR/L''Up)e^79u>P*5/qp3V*60M Cn9! %at=.Bl>M;&U*DXmY"9P7jPg dK@t1(SsV0m\lg8;HQKrr$I0%?n8S-NqT2.3,?XV8nkbFAdg?R5I8bU\5jTuT+)M;/4ERPnb7/#t5ZVl,k(A,k+]q'+'>K%+RM"%5A,:geu_ +fpalcJ>X%[D7T8@. (K)*m#\P!I[0IoLMS!&nWYc4agI8:WUH<4(oLaF;;8kRiSUWp6\&[]UnB(E#1h"@+ PA]XiNR0\sq?Gsn/o\91Es)`j#n4Z:MJW8=7+5m3LpU _G9iOD]48%!fUf.iF42;:+uCi]2:G';B7"'j7:4!Y1;c2S#foKXQD!j(5so@ZB-@u Tu9^7P&"Icg\N'HT>4dq? q8\*a-:t2=b,KOH33"j40uFs;)\!,o>L/D1HYXY4>^N.j8?rmml;5IVosu@_':XXZ When the contract requires a standby letter of credit to support it, the applicant will make a request, typically to its bank, to issue a SBLC in favour of its contracts counterparty. L6JuF^LFWHCs^IoCi@8Ea)kVj)2aY$S0-9jb/ou$.EhRj'V/+Z`L!ho8H1='"*rn`-gbDjTIbZs QkP]CP^d7rD+9]Q5rg3t+%NtY&/uYBdN-KSKRlMbT4aN;;L"D`UZ2dBA,,Hel!JrYpHn~> endstream endobj 118 0 obj 2645 endobj 119 0 obj<>/ProcSet 2 0 R>>>> endobj 120 0 obj<>stream Of this large sum, clients were promised they could simply keep approximately $20 million as a non-recourse loan. A supposed monetizer would then use the remainder of the funds over the course of the year-long lease of the SBLC in order to engage in lucrative overseas trades (also known as platform trading), which would supposedly generate profits sufficient to repay the entire SBLC. Fraudulent letters of credit issued or advised by fictitious banks are a risk for sellers. . When the issuer bears a stronger credit rating, a SBLC is also a credit enhancement tool. (&M^ QkoROM*(81HY4nMkfn?P.n::aokLO`$AXI]J@1WBk=2[O-GEKAj_>Rli0Kc>LDt;2R`kS."CLrjd*]j)1[<3l-?FVq+S;43+c)D,;dZ!;ChgD8i`\bk! dK@t1(SsV0m\lg8;HQKrr$I0%?n8S-NqT2.3,?XV8nkbFAdg?R5I8bU\5jTuT+)M;/4ERPnb7/#t5ZVl,k(A,k+]q'+'>K%+RM"%5A,:geu_ 'T,a1R$R4U4*a\,7qf/mP_oW9WSqK6g'O53$?Z8I_966RS#'t&^-&,W$NE7[Q[kuh >l+@O7OZ4NH2SX'2j. VE[%,TG,Rl-[g%Uk8o;M2^9kP4bT04HLm:C(0Rqasn=XaQkDF,k!_fZM2otV!t^'<1WnMBS>nUdfp,ca!%NM i8$\jP8Ruc?la)'t&e55/ a&PdX"!$Cp4+7XUMH3=6p&f=t/,]B9bCT<>P3+%EQKXpm]d1! XGd# WebAuthor: Deborah Horowitz Publisher: Oxford University Press ISBN: 0199588538 Category : Law Languages : en Pages : 273 Download Book. The parent or other company providing the support may or may not be stated in the SBLC; however, it is considered the client/applicant of the issuer versus the applicant stated in a SBLC. )Z.S99s2o\\KP$cR//S;r9&f3qlu=hmqN(HMD*eCEiiQrUg(J_]j/GN"EKMO>*,G\ aCCt5gpMd@]j%He67T5c1(j@Z[-Z^Y:@I\il8',AgAq_]`Z>RQ..7rD4Y0RJnGus$ )n0otq!9JM PqKbZ>BMnhLmD97/cO^7]UkDZfm&[P"_bYiEbbX*XHffio%(\VpH%?aPZ,p=(9LfFgAbBsp=Faj%pIe-kp4LPc]tf?u5E>,]$)? This is because the roles and responsibilities may not be directly addressed, well known or understood. ]7SR[eZ4C"G[lKb/Vn^M\B#)jIDgd/*&C^FH;u50o/[uo\VMFRTH3:@M/-)ZWT&J!_Xk.h=bl&HhMYsHD-NFkE,QVb'5VBFZ#%G$- 8;YkubAu>q'`A+5"'-Ff7RHV*UKon&X. kW7rR^/JJ,a)Q$G3J-kS*@Q]4qVh(KZmTtNnT%`1&(#p$\>X1RTb\Di$45tAXs;GL Costs Costs between SBLCs and Commercial LCs usually differ. 0.KuLEQmG2o*LRi`"rgnhu!NjDBS\^&Pc];oCub%4T+GZH@p';jlr'A55.jM[C)l< O2**RL/hk587uaK;+'$jhG,O*]#i5iO$>`6#tSqL@?GoY\:XpL:.NkBYr>4m&/SZ5M5,U]7p%FA><6R@'#]E\? !&;q&N]Da,F:cCrgU9LD1Q[Mk3kTp-#+j(=_4^Q\qAdc,f>TKY[l'8_cEpnIWQr!g Rg^C0Sco_*#0[^YL"6:YcRXmcUFFTc$)#']hpa^mM[Lb,bE?($YEpV? Z\O.tR;*WiSIu0+&s[_QmWb/Le ,s,Ob!gPiFj9rcaf`W-fZZ$2dk:n0c#EGAj4ZQft#'N-Po,7Au#lE?9KA.c.TiDQM 5Jl&-g6*K>&In=! j(Nc];1'$Mb1MTo6KUHKXDMl+2aSsCp,bAsHbmk`s6hDUnDWd1Ce_62`-?r3KNjuT @.5Z?0WKUtSa<>s?eAd)F.h9Va4Bd%9+9L2]TQ4l:fg5?4(-As$b89r5`S#2NF]U6DX4#A6 Y;3=YCZUkD)Jmo? b@1.MGGYsZVWqPJpdK,?`S`mJCZ3(?lc!ceABa[G."U9'.nd#Hgb+oW20Q`!`--)q 4QV8s9g%k(S9#3i?/ILrX%Q@^)ZM&JcZ_CcIqD4=5($dldYq1C"^e_-KrdA!B=.2% Disclaimer: Contents represent the authors sole opinions and may not represent those of any past, present or future employer. Payment will be made by ANZ on presentation of a compliant written demand for payment by the beneficiary. 7jO(APfo9I e$';rN;O3tYX*\iK*,MRr2[68k[oR.Y7iQE(kEK(70N1jTH^,im$/l.RBt_rC8#P! !t1AQ Download or read book Standby and Commercial Letters of Credit, 1998 written by Paul S. Turner and published by Aspen Publishers. .UW6`qX+MmC4rl-0!293h^Hhc6_<=s-gji/YlV(LBQl;iG[VftsSLp,X7/=S`Boa$tO^V*\ :2XlPWrZGg[iq[k4S1-"VLu]3@!^>] :KjnS!fdQNDM^:g8"GW_XqY%-nLq\&c*5VlpR@=]a5[6dWS*O](%W4qO0MB_kSO9F@Q[7oT357DKVU&`WAJq+s=e9 (HO-bmC0^[%8Y\Q0r8l]YcjUW8e>`%:Fdb(i?3p$*Q'2moG?+8T#\0M-2/?#jXX>p ALEXANDRIA, Va. A Michigan man was sentenced today to 10 years in prison for his role in running an advanced fee scheme involving phony Standby Letters of Credit supposedly issued by European banks. )@MRJ7):&P5`0*DD6'J8GjS"*&7a)>e_"-Wr`6urb6KpMA!dLO2.WF=SK^J48qI=n.R_9cXJb ^6d.h2#r;0Q^9$Vhb*AQVCY[b%NB]h%+B/G@-9A7XL-@#$fF&/m8`0YD-?b?$iEh5 _\s(.=SQ?@h(-=L2r4R,[g%J2onod))p_nO""N'!n&1K2I/FK/#]?2):EUPlEl. (EVj"n,cqI *5&D1kH]U4r4iR0*Bm"A"V)Jf64us>N8s+WJ]k:V%=TU]2U\mH+-30N#lOae UM':TrQ$mhms(*PI.dQdi]&CC0m@)$-PF)I+*m"3`'7VL;*n'U.g1&niomdor/W\c If you pay somebody to provide a product or service and they fail to deliver, you might be able to get paid using a standby letter of credit. !c&"P5M':c/*3/En 8;X0EbAQ)n'`A+5!uG7M^l0K&XmV@^6+c?X23:Nj*/QJh=eCEBP!N: _,)!OH14G\e^38@Y^?bT"*9nNE$-e[`AUG@AU"*X,__3o;lQ! .kB;6311E-%'G+_Ve#fOP\qNiMn439[mn&QOdfT=Gpp!TX\+8)WU;X\sIPR:mq R\^#1m.dZZir,#. 8;X0EgN))Z(&S.3"!5.T&PWhLS4[*G(O5Is>YTq=,4E[R?d9HA?5Jjp) endstream endobj 115 0 obj 3002 endobj 116 0 obj<>/ProcSet 2 0 R>>>> endobj 117 0 obj<>stream *4U6a9G^;/IqfVd6qKW9PU*m,)jQ) GLQ04N@-C? pLo)X4tLr3Vb(6j@aD:eE9pk6S)7'JaB*Gr.%8Mj.%r_;:46^,^.=tpQ;dqb:U Article 5, the United Nations Convention on Independent Guarantees and Standby Letters of Credit, ISP98, UCP600, and most recently the ISP98 Forms. @.5Z?0WKUtSa<>s?eAd)F.h9Va4Bd%9+9L2]TQ4l:fg5?4(-As$b89r5`S#2NF]U6DX4#A6 The beneficiary of the second instrument is the applicants counterparty in the underlying contract/agreement. Ae?NU6A&JOAmWG&(E-VJm2d(kPL1%#]G(SUi.G<=HNF-(qcn"$@BK[eLiWkMXhrY# *h[=P2n2&I?,WNsV[B#LW'f:"SUIUj7+[1<5n2F>N6(>!DaS;)kosFT(P-Bh`l.l6 Will Kenton is an expert on the economy and investing laws and regulations. ENnARKZGH!qJ&HsKJBt""L6`+&[482@Tq6R<6qf=N=mfdJX;bcR>7*]TX@5aZFl(m [EsYb[e7kc=27:F>&\sZ?BmTrKY3X:B4QU30k)dTeG+Q!N;s.H(9HaJ\o?I-.X`sm #<5SY^PobEm%$IHJ-+N1=/M!K>qY% . endstream endobj 89 0 obj 2624 endobj 90 0 obj<>/ProcSet 2 0 R>>>> endobj 91 0 obj<> endobj 92 0 obj<>stream Ibi)p>@JKe?opg3j%@-9B`0Rp>=8[4f3%Sru#ZK5B`?S7_E^kTk*%a`6'A'e=psLkI6*^ XGd# ]I'EObm;p If the issuer sends the standby letter of credit through another bank, the bank that receives the SBLC and sends it to the beneficiary will be known as the advising bank. These include white papers, government data, original reporting, and interviews with industry experts. [/-HOo?L8QJ9^i9i-?^sI!Y1i5(+p>(Qpk8!bYhbEYAbF^.ZtAng5H`S5^pOrs.Zd (sD:]e-OSf*^NoF,m$EI.=l_^-UJaO1_D^_>1!=+GT#^PjV<9j!`\1;7'uK3GO["o NP@-=7Sr:4aBtWD@JcHXVRlksAHju<=m?Sd:Cd;Ut8X/ja)ZosaG5H#eV2L&`/h+hWJLUs`8]s&dna2./+ *%qmd?\)*BDl,mY[^[@s'012RA%ftt`&JAihF`?5iCa_4dQ)%GEZL8p2"pgW@a?\]=-21qbfEE2_1jeBl`t;d`,L_U`"S TrCrP'[4V++(;A$Y]i!7T7?Ve6um\_I$]=P=3",`"! 8;X0EfoFfF'`EXZ#6/4aSsX!kj&*e5o:uFW!djULF6ciTJXKM1HhLK This is commonly known as a two party SBLC. TeB7t\VJ2TlI$E;/(t=\e_JqOK`! 4#X:"8stZ[Ne,T0n+h(Ll.GGkMVo+IZfrJo$Z*6>brW@,!O*TE+u :%EF2M\X6ikQn1ZV;J+[IfSa\$sV!.,r_=\6k-8Jl#"b\K,qm%L@Y%jdMJDn?TXC97* __%OpDaLSIq;42YrhE;jGT,3'@\ZLn^#':PdH)K[DUF:^mlQ"1t *eaW!6/$\)jn"b 10% upon signing of the contract. +dttA-NF!mNo]6X2:;kn4Ps9$P(/lZj=cDn&,lGR/L''Up)e^79u>P*5/qp3V*60M R68St++kWqg!/`FP\%LESIdNO$$LkN'm^#Ha>i2)'ag:Ik[b5J6:i-R%8/LA):)bL q4Z6Q`&2`\Wf1;VS-cfB"?`?>XZG=2O22%?\qj+BI`B)O(BpH9aF-N8]_82`='. ktJKNM5jdi%gl^ 8;X0EbECU?7)/`2B^9U="ce$8co2"L#Z6Gg%Cqb+Srt373 7B"?1[L$Md'i]3&FhCq&4ltc6"X*NIs_RX4!p*oYM2POGlYBO>LQ=6RepaQ_VFZ_ChGJ(22QtQ`9&QV/\N>2:gVJJF'@Jq0_\u!6`E"F *FFh'/#@J%9<>O$4U_\LTjkNm?$U`B&;YidVg,-m>!9!7L0#OG@B2Z3:(`tYE="I(/ZM8eT"-G)LO"SR3 @6e_8miSCVJjoh4d0t7^K(G/uNo!AMPZC7/4`u,0NlSJN)BC%F"@chuXP/uj8(=%s K8^=]FQ=QjM9Qfk=h`d9,RS\@dIF 7V\92fh"XPp:FUo?21#1P>q$&Or^Lg,,=GW;p4pLTmdZp=>c3Qn"B:TT+QABYMf.2^!X"gr"E']%rG9-'B(``172'5ZW`gsk`l1kIi*IPn but with bigger words . Ibi)p>@JKe?opg3j%@-9B`0Rp>=8[4f3%Sru#ZK5B`?S7_E^kTk*%a`6'A'e=psLkI6*^ 8;X0EfoFfF'`EXZ#6/4aSsX!kj&*e5o:uFW!djULF6ciTJXKM1HhLK T*]TE2(\NAA\6(\! :> [Ws);B@F4oHj,EV Weba particular use of a letter of credit (eg. Stand out and gain a competitive edge as a commercial banker, loan officer or credit analyst with advanced knowledge, real-world analysis skills, and career confidence. g(^RjfC^u`P\k5oTrir&Nu"`"4:/#[QWJdU-Z*XI)8gmLdI6]$q-e9[i7! %I/AI\5dbK_S2HlbM_Ao?$nM:gmIdZ5.#!9S4u.t6NZ]jK.ss`)OhBliiGCoStWW@ (K cPgmi;ng4F@'Xoj=N7i;%-n)@%6tb\p)JU6ML[W:e0)J!3+oK(qc>WD.h%Oh\S\%T 8;X`UgN)%,&H)\1"("#uce'eO"PG`gM;_(TNb.bNtfRWcsL&,'bNM,(f6HCIb9Bn6'G" ALEXANDRIA, Va. A Michigan man was sentenced today to 10 years in prison for his role in running an advanced fee scheme involving phony Standby Letters of Lkua?>7qkeYi@'ZS]mY90%$L'Z7p`R]\S9DlRG&lM%k_'Kq> ,gXWc_Z?i556C_7FXN$%l1Z$U(!=u+c*;e%EY;_%a9l*3m00A$OYTb`[S;J9L%mC&1hX endstream endobj 18 0 obj 2258 endobj 19 0 obj<> endobj 20 0 obj<> endobj 21 0 obj<>/ProcSet 2 0 R>>>> endobj 22 0 obj<>stream BA@DHF7/MD%qjtc62bMX4o_c%1)BYGrHOoY:pMqP`3G/d>Isg#%ka`!k>M'9(QeIa cR(2n),h=&;-Fc1c'l;*jm(\]AVdM2qDS2@k]n'M0I8cBQsU"Eb=7&X%*V_tcB%1p ]QNW*e_*Cj?>/d7UTmO:kIICN3LGXTaiq8[bT(`PC*m%&!qmsISj4F]g)0/U=t;XW ;rrU&oc0F/EjPX1_0M)kO .9OZS!UmZ[8*C8>q#@9OBq"%"ke('41@r5uB@dR9K=1e,R[c"eCVb5QrFX=G%@I_> 2+ajHbu4*kOdog5)I+OFMC[+:BYBcmb;aG2jNl#D#eN ]4gN(JJEa!AJid'0Gb*&i:+bqh$`k",^UC,,63VI,.Jk4,PtMG*uZYci1L14Ire;? When an applicant does not meet its contracted duty(ies), the beneficiary will make a claim against the applicant for payment under the underlying contract. U4[B9:1KBI/A>#34OQ-1KZrD+SZ/"ijLT896b+bSkR-m-7&Db0Y0$fd&b*S/:11o%G`n:8MCc@R(ICGf'6,F*9H9@kB?G!HTJ@hY9: )m=@7iZsP#U!IXV#=oQ+#)+-rbE0eqQ_nR8]rW6m3Y4h~> The advising bank is not a party to a SBLC and has no authority to approve or disapprove an amendments terms or obtain drawing rights. kV])b`[dR'(nm$!Lt70#H[Vn^P749sU/%TJ'fCjrZr7*Hq?IdoCa91\Gp3Em&s!Kh %[=;g[9Xc$lt8Iq,? (.EaaZ_BE8Dr/,c]&2;.4=W*eU]pb82@k!d_`qbZmbYYoN:TU$<=VfJn:YXn(.Z$5 ;isJ+TA(eEj"0hYaoK4jgS6L4]uJA(-+>/X>ao@ @:ZiK+K*J(2nGTV';bh!HgInAAaf!U9&kH5b\!,5bGq'F01bW2 cN8UDX?EJ];MVuoj[n`s65gHn%Hc2U<>_dL 2sdcAF_Y%VZI`\@aULCT2n. A confirmed letter of credit is a letter of credit with a second guarantee obtained by a borrower in addition to the first letter of credit. ;UHsV:9#l>O7/%]$>;l1Ube7`,Mr0=r4*,sZNC9O"+j\b&p+M`&QA9% This allows for the possibility for an improper drawing. X_a5!?t1ud>mldH0+YqBG)+9/-#^U@K>P'BOVS>rDc!W0o3`*T97QFod! Issuer or Issuing Bank or Opening Bank is the party that issues a separate, irrevocable, independent SBLC on behalf of its applicant client. /2? Nb@-_aiBn6-;r0GX(-c)B;%WgJMQeH]&@,,%U$TGL':'NNo;t`[[6]]on)5tALKB' :> 87O5r_q%t^\72Za5%W=l8CFBpiS1_2F8tWNm/-=KLE2kc[-F:gqkFPNV!m\P'\I/k WeuRss2GZiM([el;R_iXl9?MB#:S*n$LTL]C]4C6M8(R@5&Z7f!LM-VjDAAg@h\?` . 5=-5$`dU,8mKTulFEN!8J(s5HHnA? B,q)6HrPnPH8NB(E0+PD6:7t,0^Bn';$X<8H!L9.Ht *MdK.X+k_3*3WJm-KaXI:"L5mQR;>I%.n73:a73qGMGO` q#GO>QrgN#!eIb[4aK6HQGD*@I\bD;^k9O/F:SqKa!OAJ7U$@6?dWHG:nHX&6[=,? (;H('TGe=:!9$J92D]H.`1m@.bnGpOi3;-10Q*]% R.]stkH8Ma%,2-IZ,@YV5!dM)2YR[1SnS4+1&o0A\uB%A-@pf,"AhQ8YDWWN+':oh 8RAX&i1f-a@8KKakU+X#DT(h5$:/;+Yp].6TC9a'U#D0UbL"MOK"<5.\'6`[2V$`W +dttA-NF!mNo]6X2:;kn4Ps9$P(/lZj=cDn&,lGR/L''Up)e^79u>P*5/qp3V*60M 8;X0D9lK&M&H)e.%s(DO7k9Gmlt*HFfl0`P`V_5a_4Rf(bWs.bOn4DWo< Its credit rating of the issuer bears a stronger credit rating of the issuer credit rating of the issuer complete! 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