This webinar provides an essential understanding of letters of credit, including the letter of credit terminology, structure, and function. Whether your bank issues letters of credit, accept letters of credit, or takes liens on the letter of credit rights, this program is for you.

Both commercial letters of credit and standby letters of credit will be discussed, their content, conditions precedent to payment, and the mechanics of their actual presentment for payment. Bankruptcy issues and common problems will also be reviewed.

Areas Covered:-

• Letter of credit terminology
• The function of a letter of credit
• Structure of a letter of the credit transaction
• Commercial letters of credit vs. standby letters of credit
• Contents of a letter of credit
• Conditions precedent to payment
• Presentment for payment
• Article 5 of the UCC
• The Uniform Customs and Practices (UCP) for documentary credits
• Assignment and transfer of letters of credit
• Letter of credit rights and liens on the letter of credit rights
• Letters of credit vs. guarantees
• Letter of credit facilities in loan agreements
• Letters of credit in bankruptcy
• Letters of credit issued by banks that later failed
• Common letter of credit problems

Who Should Attend:-

Loan officers, operations officers, credit administration personnel, and others involved in the letter of the credit function