国际结算笔记5

1、Chapter 6 L/G and Stand-by L/C nL/Gdefinition A bank guarantee is a written promise issued by a bank at the request of its customer, undertaking to make payment to the beneficiary within the limits of a stated sum of money in the event of default by the principal. A bank guarantee is used as an inst

2、rument for securing performance or payment especially in international business.Chapter 6 L/G and Stand-by L/Cclassificationsl accessory guarantee & independent L/G Accessory guarantee is an accessory contract by which the guarantor undertakes to answer for the debt, default or miscarriage of an

3、ther person known as the principal debtor. The guarantors obligations are accessory to and dependent on the contract in the respect of which they are given. Independent L/G , independent of the contract; irrevocable; writtenuConditional and unconditional bonds.Chapter 6 L/G and Stand-by L/ClConditio

4、nal and unconditional bondsUnconditional bonds can be called at the discretion of the buyer， demand Guarantees.Conditional bonds can be divided into two types: bonds requiring documentary evidence and bonds not requiring documentary evidence.parties Applicant: the person at whose request the guarant

5、ee is issued;Chapter 6 L/G and Stand-by L/CBeneficiary: the party in whose favor the guarantee is issued;Guarantor: the bank that issued a letter of guarantee undertaking to make payment to the beneficiary in the event of default of the principal against the presentation of a written demand and othe

6、r specified documents;Instructing party: the party that instructs the guarantor to issue a letter of guarantee on behalf of the applicant by providing counter ceduresChapter 6 L/G and Stand-by L/Cl The principal and the beneficiary sign a base contract;l The principals bank, the instruc

7、ting bank, signs a counter indemnity with the principal;l The instructing bank provides counter indemnity to the beneficiarys bank, the guarantor of the bond;l The guarantor issues a bond to the beneficiary;l If the principal fails to fulfill his obligation, the guarantor pays to the beneficiary;l T

8、he guarantor asks for and obtains reimbursement from the instructing bank;l The instructing bank asks for and obtains reimbursement from the principal. Chapter 6 L/G and Stand-by L/Ctypesl tender guarantee, or bid bond Bid bond is an undertaking given by a bank at the request of a tender in favor of

9、 a party inviting tenders abroad, whereby the guarantor undertakes to make payment to the beneficiary within the limit of a stated sum of money in the event of default by the principal in the obligations resulting from the submission of tender.l performance guarantee/bond: an undertaking given by a

10、bank at the request of a supplier of goods or services to a buyer, whereby the guarantor undertakes to make payment to the beneficiary within the limit of a stated sum of money in the event of default by the supplier in due performance of the contract between the principal and the beneficiary.Chapte

11、r 6 L/G and Stand-by L/Cladvance payment/repayment guarantee: issued at the request of the exporter to the importer when the advance payment is required by the former.lquality/maintenance guaranteelretention money guaranteelcustoms guaranteelguarantee for compensation trade Chapter 6 L/G and Stand-b

12、y L/Clre-issue guaranteelpayment guaranteeldeferred payment guaranteelloan guaranteelleasing guaranteelpayment guarantee for commission or any other chargesChapter 6 L/G and Stand-by L/CThe similarities between the Bankers L/G and L/C Bank credit, that is, bank takes the first payment responsibility

13、; document transactions; similar contents.The difference between the Bankers LG and L/C:Different applications;Different requirements for documents.Chapter 6 L/G and Stand-by L/CnStand-by L/CDefinition A stand-by letter of credit is a clean letter of credit that generally guarantees the payment to b

14、e made for an unfulfilled obligation on the part of the applicant.Chapter 6 L/G and Stand-by L/CParties and procedures Applicant, beneficiary, advising bank, and the issuing bank the relationship between the stand-by L/C and the documentary L/C:l Both of the issuing banks take the first payment resp

15、onsibility;l Payments are honored against the documents or certificates;l Both of the credits are issued on the base of sale contract or other contract and independent of these contracts.Chapter 6 L/G and Stand-by L/CThe difference between the stand-by L/C and the documentary L/C:l Under the documen

16、tary L/C, the beneficiary can be honored only after performing the obligation and presenting the documents complying to the L/C; under the stand-by L/C, the beneficiary can be honored only if the applicant defaulted;l The documentary credit applies to the goods sales; the stand-by L/C applies to mor

17、e general transactions;l The documentary L/C generally specifies the transport documents as the prerequisite for payment; the stand-by L/C generally specifies the default certificate. n 不同结算方式的结合使用 信用证与汇款相结合 常用于允许其交货数量有一定机动幅度的某些初级产品的交易； 明确采用的是何种信用证和何种汇款方式，以及信用证支付金额的比例。 信用证与托收相结合 信用证规定受益人（出口商）开立两张汇票，

18、属于信用证项下的部分货款凭光票支付，而其余额则将货运单据附在托收的汇票项下，按即期或远期付款交单方式托收。明确信用证的种类和支付金额以及托收方式的种类，且须注明“在全部付清发票金额后方可交单” 。 汇款与银行保函相结合 常用于成套设备、大型机械和大型交通运输工具（飞机、船舶等）等货款的结算。明确信用证的种类和支付金额以及托收方式的种类，且须注明“在全部付清发票金额后方可交单” 。 Chapter 7 Financing in international settlement nFinancing in export negotiation under guarantee After the e

19、xporter ships the goods and presents documents specified in the L/C or other contracts as guarantee, the bank provides the float financing to the exporter.uNegotiation under documentary collectionProcedures:Chapter 7 Financing in international settlement The exporter presents documents and applicati

20、on for negotiation instead of the application for collection to the bank; Once the bank accepted the application, he will credit the clients account; The remitting bank remits the documents and its own collection instruction to the collecting bank; The remitting bank settles the negotiation account

21、after receiving the proceeds. If the bill is dishonored, the bank can get compensation from the exporter, the drawee, or from the goods. Chapter 7 Financing in international settlement unegotiation under documentary credit: The exporter ships the goods and presents the documents as guarantee for ban

22、k short-term loan. Classifications: Documents as the guarantee; The acceptance of bill as the guarantee; The acceptance of acceptance L/C as the guarantee.Chapter 7 Financing in international settlementdiscounting of financial documentspacking loan or packing financing Definition: The exporter uses

23、the original L/C as the guarantee to apply to the bank for financing the production, packing and transportation. Conditions: The L/C is irrevocable and nontransferable; up to 90% of the L/C amount. Chapter 7 Financing in international settlement anticipatory creditFactoringuDefinition: Factoring is

24、a comprehensive financial service，in which, the seller transfers its accounts receivable arising out of commodity sales/service contracts it signs with the buyer now or in the future to the factor (a financial institution that provides factoring service), which will provide at least two of the follo

25、wing services: trade financing, sales sub-account management, call for payment of accounts receivable, and credit risk control and guarantee of bad debts Chapter 7 Financing in international settlement lProcedures: The exporter applies for an approval to his bank. The exporters bank conveys the appr

26、oval to the importers bank; The import factor assesses the importers credit and approves the line of credit; The importer places the order on the exporter and settles by D/A or O/A; The exporter delivers the goods to the importer and then presents the documents to the export factor and receives prep

27、ayment for about 50-90% of the account receivable; Chapter 7 Financing in international settlement The export factor gives documents to the import factor who is responsible to ask for payment to the importer; Importer pays his factor who remits the proceeds to the exporters factor; The exporters fac

28、tor settles the account with the exporter.Chapter 7 Financing in international settlement uAdvantages to exportersThe seller can get assistance from the factor by latters providing an assessment of the creditworthiness of the overseas buyers as well as by latters offering credit protection and colle

29、ction service;The seller will increase sales through factors knowledge of the market and ability to offer credit lines;Chapter 7 Financing in international settlement uAdvantages to importersIt is easier for the importer to purchase on O/A and to save settlement costs;The importer is ensured to rece

30、ive the goods complied with sales contract.ForfeitinguForfeiting provides a source of non-recourse finance through use of drafts, promissory notes or other instruments representing sums due to the exporter, in which, a bank in the sellers country discounts a note or draft carrying the backing of the

31、 buyers bank.Chapter 7 Financing in international settlement ucharacteristics: The goods involved in forfeiting are usually capital goods; Forfeiting is a medium-term business in the sense that only those maturities from six months to five or six years are to be considered; The purchase of bills of

32、exchange or promissory notes falling due on same future date by a forfeiter is without recourse to any previous holder if the drawee of the draft or maker of the promissory note fails to pay at maturity;Chapter 7 Financing in international settlement Forfeiting is a relatively inexpensive and attrac

33、tive alternative to other forms of export financing for the exporter; Unless the credit standing of the importer is first class, any forfeited bill must carry a collateral security in the form of an aval or an unconditional and irrevocable bank guarantee acceptable to the forfeiter ensuring the hold

34、er thereof that the importer will pay it at maturity; The purchase of bills in forfeiting is carried out by discounting, namely by deduction of the interest in advance for the un-matured draft.Chapter 7 Financing in international settlement uprocedures: First, the importer and the exporter signs the sale contract; Second, the exporter applies to his bank for forfeiting and g