Using the ISP98 Model Forms for Standby Letters of Credit

Duration: 90 Minutes
Letters of credit are commonly used in business transactions to ensure payment and performance by the parties. Over $600 billion of standby letters of credit are currently outstanding in the US marketplace. The transactions they support can be complex, leading to concern that the letters of credit be properly worded.
ISP98 Model Forms
Instructor: Buddy Baker
Product ID: 500194
The majority of these letters of credit are subject, by their terms, to the International Standby Practices (“ISP98”), a body of rules and practices designed for making standby letters of credit dependable instruments for the purposes they serve. Yet, this is an area that is poorly understood by the companies using these instruments and the lawyers who represent them, leading to the use of unnecessarily complicated and sometimes unworkable language rather than relying on ISP98 provisions.

In June 2013, the Institute for International Banking Law and Practice, the group that created the ISP98, released a set of eight model forms for use in drafting letters of credit that are subject to the ISP98. The model forms, together with annexes and endnotes explaining their use, elegantly demonstrate how various, common situations can be dealt with.

This webinar will acquaint participants with the ISP98 Model Forms and thereby prepare them to structure letters of credit that comply with the provisions of the ISP98. The program will focus on how and when to use the model forms to accomplish such objectives as automatic extensions, automatic reductions, transfer of drawing rights, confirmation, and arranging local guarantees.

Agenda:
  • How do standby letters of credit work?
  • What is the ISP98?
  • What is the purpose of the ISP98 Model Forms?
  • A walk through the Model Forms
  • Variations and pointers described in the endnotes
Why Should you Attend:
  • Objective #1: Understand the bare essential requirements for a well-written letter of credit
  • Objective #2: Explore repurcussions of poor language
  • Objective #3: Develop templates and boilerplates for use in common situations
  • Objective #4: Learn about variations in the ISP98 Model Forms to adapt them to complex situations
Objectives of the Presentation:
  • Form 1: Model Standby Incorporating Annexed Form of Payment Demand with Statement
  • Form 2: Model Standby Providing for Extension and Incorporating Annexed Form of Payment Demand with Alternative Non-Extension Statement
  • Form 3: Model Standby Providing for Reduction and Incorporating Annexed Form of Reduction Demand
  • Form 4: Model Standby Providing for Transfer and Incorporating Annexed Form of Transfer Demand
  • Form 5: Simplified Demand Only Standby
  • Form 6: Model Counter Standby with Annexed Form of Local Bank Undertaking
  • Form 7: Model Standby Requiring Confirmation
  • Form 8: Model Confirmation of Standby
Who can Benefit:
  • Treasury Department Employees
  • Credit and Collection Managers
  • Company Presidents and CFOs
  • Company Vice Presidents
  • Business Owners
  • Sales Managers
  • Attorneys
  • Accountants
  • Bankers
  • Companies involved in Reinsurance, Commodities Trading, Engineering, Arranging Financing
  • Anyone who uses standby letters of credit
$300
Recorded Session for one participant
Get life time access with download option!
Book this course
Pay Now
  $450.00 Training CD
Free shipment within 4 Working Days of placing the order. Get life time access for unlimited participants.
  $550.00 Flash Drive
Free shipment within 4 Working Days of placing the order. Get life time access for unlimited participants.
For multiple location please contact our customer care team +1-510-857-5896.
How it works
Live Session - How it works
  • Login to onlinecompliancepanel with your registered username and password https://www.onlinecompliancepanel.com/login
  • The webinar joining link, username and password for joining the webinar will be updated on your OCP Account 24 hours prior to the webinar
  • Presentation handouts in Downloadable PDF format will be updated on your OCP Account 24 hours prior to the live session
  • Login to the audio conference on the scheduled date and time
  • Get answers to your queries through interactive Q&A sessions via chat at the end of the session
  • Download the Certificate of Attendance and Purchase Invoice from your OCP Account 24 hours after the completion of the session
  • Please let us know your thoughts and views at the end of the webinar, your valuable feedback will help us improve
Recorded Session - How it works
  • Login to onlinecompliancepanel with your registered username and password https://www.onlinecompliancepanel.com/login
  • Upon purchase of the recorded session a link will be updated on your OCP Account within 24 hours
  • Please click on the link to access the Recorded Session
  • Presentation handouts in downloadable PDF format will be updated on your OCP Account within 24 hours of the purchase of the product
  • Download the Certificate of Attendance and Purchase Invoice from your OCP Account after 48 hours of the product Purchase
  • Please share your valuable Feedback at the end of the session
Instructor Profile:
Walter (Buddy) Baker has over 30 years of experience in international trade finance. In May 2009 he joined Fifth Third Bank where he heads their Global Trade Solutions Delivery team. Fifth Third is one of the 20 largest banks in the US and provides a full range of risk mitigation and financing products for exporters and importers. Prior to Fifth Third, Buddy worked for Atradius Trade Credit Insurance, ABN AMRO Bank, Bank of America, Wachovia Bank, and The First National Bank of Chicago.

Buddy is a recognized expert in trade finance and author of numerous magazine articles and the books Users’ Handbook to Documentary Credits under UCP600, Documentary Payments & Short-Term Trade Finance, and The Regulatory Environment of Letters of Credit and Trade Finance. He owns the consulting firm Global Trade Risk Management Strategies, which specializes in educational training, and makes frequent presentations for national associations of exporters, importers, bankers and lawyers. Mr. Baker serves as a member-at-large of the National Letter of Credit Committee of the International Financial Services Association and is actively involved in establishing national and worldwide standard practices for LCs, such as the recent revision of the Uniform Customs and Practice for Documentary Credits (referred to as UCP600), the official ICC guide for examining letter of credit documents, called the International Standard Banking Practices for the Examination of Documents under Documentary Credits, the eUCP supplement to the UCP dealing with electronic documents, the International Standby Practices, and Article 5 of the Uniform Commercial Code. He acts as an advisor to the Institute for International Banking Law and Practice and also serves on the Board of Directors of the Association of International Credit and Trade Finance Professionals (ICTF), a multinational association of export credit managers.

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