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The Letters of Credit Manual provides bankers with a comprehensive source of information
regarding the legal requirements and use of both Commercial Letters of Credit and Standby Letters of Credit.
The Manual discusses the various sources of rules that govern letters of credit:
- International Standby Practices (ISP98)
- Uniform Customs and Practices for Documentary Credits – UCP 500 (1994 revision)
- Uniform Customs and Practices for Documentary Credits – UCP 600 (2007 revision)
- eUCP, which governs the electronic presentation of documents under letters of credit, which supplements UCP 600
- Division 5 of the California Uniform Commercial Code.
Additionally, the Manual explains the basics of letters of credit and the role of each party to a letter of credit, as well as their
rights and responsibilities. The Manual also provides detailed discussions of the operation of a Commercial Letter of Credit
transaction and the operation of a Standby Letter of Credit transaction. In addition, the Letters of Credit Manual discusses how
to structure and document Commercial Letters of Credit and Standby Letters of Credit.
The Manual also provides a discussion of ancillary lending issues affecting letters of credit, such as:
- Regulations governing financial institution guaranties
- Treatment of letters of credit under lending limit regulations
- Risk-based capital guidelines
- OFAC regulations
- Anti-boycott laws
- Insolvency issues affecting letter of credit transactions
In addition to explaining letters of credit, the Manual includes discussions of Bankers’ Acceptances and Documentary Collection
procedures.
The main text of the Manual is 258 pages, plus 26 pages of appendixes.
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