letters' rule
unwilling to do that, which SLC proves that there are
problems between buyers and sellers.
Page 10
3 Differences of CLs & SCLs
Second
Willing to pay for the beneficiaries’ bills or not
Page 11
3 Differences of CLs & SCLs
Third
Importer or exporter
take importers as the LC accountee , and take exporters
as the beneficiaries
importers or exporters can SLC either are the accountee and
Second
prove he or she has already LCWpbaeiynllienfofgicrroteitaboharleiilegissae’tidonbsasic trade
bills or not
prove the debtors haven't SLC realised the basige 9
3 Differences of CLs & SCLs
Second
Willing to pay for the beneficiaries’ bills or not
willing to pay for the LC beneficiaries' bills follow the
Page 6
of credit.
3 Differences of CLs & SCLs
First
Realised basic trade obligations or not
Second
Willing to pay for the beneficiaries’ bills or not
Third
Importer or exporter
SCLs
Guarantees issued to cover
contingencies that are potentially
more severe and less predictable
than contingencies covered under
trade-related or commercial letters
Page 3
1 Retell the Exercise 10 1 Retell the Exercise 10 27月 Definitions of CLs & SCLs 3 Differences between CLs & SCLs 4 Competition of SCLs
Page 4
1 Retell the Exercise 10
Members introduction & division of work
Name discussion presentation Q 1 Q 2
PPT
何宇峰
√
刘晓文
√
常超
√
√ √ √
霍敏健
√
√
1 Retell the Exercise 10 27月 Definitions of CLs & SCLs 3 Differences between CLs & SCLs 4 Competition of SCLs
Third
willing to pay fIomr pthoerter or
LC
beneficiaries' beixllspofortlelorw the
letters' rule
unwilling to do that, which SLC proves that there are
problems between buyers and sellers.
beneficiaries’
bills or not
prove the debtors haven't
SLC realised the basic trade
obligations
Page 8
3 Differences of CLs & SCLs
First
Realised basic trade obligations or not
performance of the buyer of the guaranty.
(orders $10 million of machinery)
U.S. importer
(machinery shipped)
($10 million letter of credit issued)
German exporter
Page 5
2 Definitions of CLs & SCLs
Def.
CLs
Contingent guarantees
sold by an FI to underwrite the
trade or commercial performance
of the buyer of the guaranty.
How do standby letters of credit differ from commercial letters of credit? With what other types of FI products do SLCs compete?
Definitions Differences Competition
Page 7
3 Differences of CLs & SCLs
First
Realised basic trade obligations or not
Second
Third
prove he or she has already LCWpaiyllinfogrrotetbohaleilgisaetidonbsasiIecmxtppraoordrtteeerr or
LOAN COMMITMENT
OBS Product
Page 13
No Back
Match CP
Not expensive
2 Definitions of CLs & SCLs
CLs
Contingent guarantees sold by an FI
to underwrite the trade or commercial
the beneficiaries
Page 12
4 Competition of SCLs
COMPANY possibility of getting a reliable source of future cash greatly improved, competitive advantage also increase.
Page 15
U.S. FI