Advanced Guarantees
Learning objectives
By the end of this letter of credit course you will be able to:
Identify key elements of direct and indirect guarantees.
Identify the laws or rules that should be applied to a bank guarantee.
Identify the possibilities for termination of a guarantee and the difference between expiry date and expiry event.
Identify the minimum standards for examination of documents.
Learn what to do if not every documents is available, or if there are discrepancies.
Distinguish parties to a bank guarantee and their legal relationship to each other.
Analyse the most important features of the rules, what they cover and how they are applied.
Recognise how and when a bank guarantee comes into force.
Distinguish the preliminary requirements for an extend-or-pay request.
Identify how to prevent a guarantor from paying under a guarantee in case of fraud.
Course curriculum
Lessons
In this lesson, you will explore the basic tenets of a bank guarantee, including how to:
- Identify key elements of direct and indirect guarantees.
- Distinguish parties to a guarantee and their legal relationship to each other.
- Analyse the methods for dealing with multiple beneficiaries and applicants.
In this lesson, you will learn the importance of bank guarantees in international trade, including how to
- Identify the parties that can issue a guarantee.
- Distinguish the various types of security instruments.
- Explain a non-documentary condition and the risks it involves.
In this lesson, you will learn the different rules in the market, including the historic development of URDG 758 and its predecessor URDG 458.
You will also analyse the most important features of the rules, what they cover and how they are applied.
In this lesson, you will gain an understanding of the amount and currencies that are used in a guarantee and learn to distinguish the differences among currency of guarantee, currency of payment and change of currency.
In this lesson, you will learn the steps in the lifecycle of guarantees including how to:
- Recognise how and when a guarantee comes into force.
- Identify the possibilities for termination of a guarantee and the difference between expiry date and expiry event.
In this lesson, you will learn what assignment means for bank guarantees including how to:
- How to correctly assign the proceeds to a third party.
- How to assign the rights under a guarantee to a third party.
- Identify the requirements for a correct assignment and the process of reversing an assignment.
In this lesson, you will learn how to claim under a guarantee, including:
- The minimum standards for examination of documents.
- How to distinguish the preliminary requirements for an extend-or-pay request.
- What to do if not every documents is available, or if there are discrepancies.
In this lesson, you will learn how fraud can occur in a bank guarantee – and different ways to mitigate this.
In this section, we will take a look at two sample case studies that show how simple solutions can remedy problems often seen in this sector.
This section will test your knowledge on what you have learned so far using self-assessment questions. Please note, this is not an exam.
FAQs
Answers to your most commonly asked questions.
This course forms part of the curriculum for the Certified Trade Finance Professional (CTFP) but can also be purchased on its own.
If you just complete this course then you will earn a Letter of Completion once you finish (please note there is no exam for this individual course).
However, this course can also be put towards achieving the CTFP qualification. More details can be found here.
If you complete the CTFP then you will earn a Certificate of Achievement, signed by the ICC Secretary General, once you pass the final exam.
All candidates need to be able to read and write in English. For this course, we recommend that you have previously completed the ICC Academy’s Introduction to Guarantees course.
Your purchase includes 12 months to access all the lessons. You can access the lessons as many times as you like within the 12-month access period.
This course is accredited by the London Institute of Banking and Finance (LIBF), The Bankers Association for Finance and Trade (BAFT) and the Global Trade Professionals Alliance (GTPA).
Due to the immediate availability of our course content upon registration, ICC Academy has a strict no-refund policy for our courses and certifications. For more details, please refer to our Terms and Conditions.
This online course will take approximately 5-6 hours to complete depending on your level of experience.
Candidates will have 12 months access to the lessons which can be repeated.
- One-year access to the online course and all 10 lessons
- Two case studies and 52 assessment questions – we’ll show you how to apply what you learn to real-world scenarios. Please note this is not an exam.
- A printable glossary containing all the key terms for you to refer to throughout the course
- A downloadable study reference guide
- Dedicated, full-time IT support
- Certificate of completion
Yes, all our courses are taken online. This means they are accessible at any time, from anywhere in the world. Learn when and where you want.
This course has been designed for 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.
