Course Outline

  • Introduction.
  • Development of Guarantees.
  • Legal Analysis and Terminology
  • How to reduce Credit Risk.
  • International Bank Guarantees.
  • Types of Guarantees Regulatory and Legal Risks
  • Perceived Problem Areas
  • Comprehensive Exercises
  • Q & A and Feedback. 

KEY CONTENTS 

Introduction

  • The role of Guarantees in the International Trade
  • The nature of risk in international trade
  • Payment and Performance Obligations
  • The role of guarantees in risk allocation

Development of Guarantees

  • Financial Documents
  • Guarantees proper
  • Contracts of surely
  • Indemnities
  • Corporate guarantees and letters of comfort

Legal Analysis and Terminology

  • Primary and Secondary Obligations
  • Formal requirements
  • Consideration
  • Co-extensive of obligations
  • Bonds - Definition and Origin
  • Key distinction between bank guarantees and Sureties
  • Bank Guarantee – definition
  • Demand based Guarantees
  • Range of Demand Based Guarantees
  • Autonomy and Conditionality
  • Case Study

International Bank Guarantees – Risk Analysis

  • Guarantees and the allocation of risks
  • Obvious and hidden risks in demand guarantees
  • “Unfair calling”
  • “Extend or Pay” demands
  • What should a banker look for when issuing the guarantee
  • Default and Demand based Guarantees

Case Study 

Types of Guarantees

  • Bid/ Tender Bonds
  • Advance Payment/Retention Money Guarantees
  • Performance Bonds
  • Labour Guarantee
  • Maintenance Guarantee
  • Standby Letters of Credit(SBLC) - Origin, nature and use of SBLC
  • Comparison of SBLC and non-SBLC
  • Comparison of SBLC and Demand Guarantees

Perceived Problem Areas

  • Un-enforceable Expiry Date
  • Application of foreign laws
  • Applicable Law– Primary Sources and Subsidiary Sources
  • Statutory regulations– UAE, Kuwait, Iraq, Bahrain
  • Specific country positions– Egypt, Oman, Syria, Lebanon, Algeria, Saudi Arabia, India

Comprehensive Exercise

Q & A and Feedback 

WHO SHOULD ATTEND 

All involved in commercial dealings.

  • Importers or Exporters
  • Finance Staff
  • Logistics Staff
  • Administration staff who draft commercial documents

WHAT YOU WILL OBTAIN 

  • Update on the latest in Banking Regulations and legal opinions
  • Real life examples and interesting case studies
  • A chance to discuss and clarify your doubts, questions, trade issues etc.
  • Complete study material
  • Quality refreshments and lunch
  • Certificate of attendance
  • Networking opportunity with banking and trade professionals 

We bring you real learning for real results.  Our experiential learning methodology is designed is bring you a dynamic learning experience

All our courses are designed and delivered by practicing professionals who bring a high degree of practical relevance to the course.

Enriched with real life case studies our course content and is regularly updated with latest developments, changes in laws, and notifications.

In today’s ever evolving and competitive environment we strive to empower you with knowledge that takes you beyond best practice to becoming a value added contributor to developing innovative new practices.

See all Navigate Consulting courses

Banking Related Questions

Contact information not available.

Courses you can instantly connect with... Basel III & IFSB Regulations Nasdaq Dubai Financial Analytics for Islamic Banks Nasdaq Dubai Islamic Brokerage Principles & Governance Nasdaq Dubai

Is this the right course for you?

Rate our content

Didn't find what you were looking for ?

or