Introduction to Standby Letters of Credit

Course code : TF 101-12

This course will provide participants with essential knowledge of the process flow and industry practices involving Standby Letters of Credit. In this course you will gain an understanding of how the basic principles that apply to Documentary Credits of all kinds apply to Standbys as well as the ways in which Standbys differ from other types of Documentary Credits. This course will close out with a look at how industry practices pertaining to Standbys differ from those pertaining to Demand Guarantees; and how these are reflected in the rules governing each.

Number of teaching lessons : 9 Modules Duration : 3 hours
Level : 1 Language: English
Credit category : 3

General practitioners working in banks, corporates, or financial institutions in functions such as relationship management, credit and compliance, but with an interest in trade finance.

This eLearning course is part of the Global Trade Certificate (GTC) and includes a self-assessment tool to help you prepare for the final examination of the GTC.

However, please note you will only be able to take the final exam and recieve the certificate if you purchase the full Global Trade Certficate course. You will not be able to take the exam if you make multiple, separate purchases of individual courses that together make up the GTC.

The pass grade for the GTC exam is set at 70%.

Module 1 How Standby Letters of Credit Evolved from Documentary Credits

Module 2 How Standby Letters of Credit Differ from Commercial Letters of Credit

Module 3 Uses of Standby Letters of Credit

Module 4 Standbys vs. Guarantees & Bonds

Module 5 Using Standby L/Cs to Arrange Local Guarantees

Module 6 Capital Adequacy (Solvency) Regulations and Letters of Credit

Module 7 Tips, Tricks, and Facts regarding Standbys

Module 8 Case Study

Module 9 Assessment

Walter (Buddy) Baker has more than 30 years of experience in working with companies to finance and insure their trade receivables. His professional experience includes stints with Atradius Trade Credit Insurance, ABN AMRO Bank, Bank of America, Wachovia Bank, and The First National Bank of Chicago.

Buddy owns the consulting firm Global Trade Risk Management Strategies, which specializes in both online and on-site educational training, and designed the online training/certification programs used by the Association of International Credit and Trade Finance Professionals (ICTF) and by the Association of Trade and Forfaiting in the Americas (ATFA) and the trade finance sections of the certification program used by the Finance, Credit and International Business Group (FCIB) of the National Association of Credit Management (NACM). Mr. Baker has authored numerous magazine articles and the books Users’ Handbook to Documentary Credits under UCP600 (ICC publication no. 694), Documentary Payments & Short-Term Trade Finance, and The Regulatory Environment of Letters of Credit and Trade Finance. As a member of the Commercial Letter of Credit Committee of the Bankers’ Association for Finance and Trade, the Advisory Council of the Institute for International Banking Law and Practice, and the Council for International Standby Practices, Mr. Baker is actively involved in establishing national and worldwide standard practices for both commercial and standby LCs. He also serves on the Board of Directors of the Association of International Credit and Trade Finance Professionals, a multinational association of export credit managers.

Buddy earned his undergraduate degree at Yale University and his MBA at Northwestern University.

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