Chapter 1 Summary of International
Settlement 288
1.1 Definition of International Settlement 288
1.2 Main Contents of International Trade
Settlement 288
1.3 Laws, Conventions and Rules Concerning
International Settlement 290
1.4 History and Development of
International Settlement 291
1.5 Bank’s Network and Clearing
Systems 291
Chapter 2 Negotiable Instruments 293
2.1 General Introduction 293
2.2 Bills of Exchange 293
2.2.1 Definition 293
2.2.2 Essentials & Non-essentials of
a Bill of Exchange 294
2.2.3 Acts of a Bill of Exchange 296
2.2.4 Classification of a Bill of
Exchange 300
2.3 Promissory Notes 300
2.3.1 Definition 300
2.3.2 Characteristics of a Promissory
Note 301
2.3.3 Essentials of a Promissory
Note 301
2.3.4 Difference Between a Promissory
Note and a Bill of Exchange 301
2.4 Cheques 302
2.4.1 Definition 302
2.4.2 Essentials of a Cheque 302
2.4.3 A Banker’s Duty to Honor
a Cheque 303
2.4.4 Differences Between a Cheque
and a Bill of Exchange 303
Chapter 3 Remittance and
Collection 305
3.1 Remittance 305
3.1.1 Definition 305
3.1.2 Methods of Remittance 305
3.1.3 Procedure of T/T 305
3.1.4 Application of T/T in International
Trade 307
3.2 Collection 308
3.2.1 Definition 308
3.2.2 Methods of Collection 308
3.2.3 Application of Documentary
Collection 309
3.2.4 Procedure of Documentary
Collection 310
3.2.5 Comments on Collection 311
Chapter 4 Documentary Credits 312
4.1 Definition 312
4.2 Features of a Credit 312
4.3 Parties to a Credit 313
4.4 Honor & Negotiation of a Credit 314
4.5 Procedure of a Credit 314
4.6 Classification of a Credit 321
4.7 Attentions for a Credit 324
Chapter 5 Letters of Guarantee &
Standby Credits 326
5.1 Overview 326
5.2 Letters of Guarantee 326
5.2.1 Definition 326
5.2.2 Functions of a Bank
Guarantee 327
5.2.3 Parties to a Bank Guarantee 327
5.2.4 Classfication of Bank
Guarantee 328
5.2.5 Contents of a Bank
Guarantee 331
5.3 Standby Credits 332
5.3.1 Definition 332
5.3.2 Functions & Features of
a Standby Credit 332
5.3.3 Classification of
a Standby Credit 333
Chapter 6 Documents Related to
International Settlement 334
6.1 Overview 334
6.2 Classification of Documents 334
6.3 Issuance of Documents 334
6.3.1 Issuer 334
6.3.2 Originals & Copies 335
6.3.3 Signed Documents 335
6.3.4 Date of Issuance 335
6.3.5 Expiry Date and Place for
Presentation 336
6.3.6 Drawing Amount 336
Chapter 7 Examination of
Documents 351
7.1 Complying Presentation 351
7.2 Standard for Examination 351
7.2.1 Highlighting Documents 351
7.2.2 Period for Examination 352
7.2.3 Period for Presenting Original
Transport Documents 352
7.2.4 Conformity of Documents 352
7.2.5 Issuer 353
7.2.6 Documents & Conditions Not
Required 353
7.2.7 Date of Documents 353
7.3 Discrepant Documents, Waiver and
Notice 354
7.3.1 Refusal of Discrepant
Documents 354
7.3.2 Waiver 354
7.3.3 Notice 354
Chapter 8 International Trade
Financing 361
8.1 Overview 361
8.2 Import Trade Financing 362
8.2.1 Limits for Issuing Credit 362
8.2.2 Trust Receipts 363
8.2.3 Shipping Guarantees 364
8.2.4 Inward Bills 364
8.3 Export Trade Financing 365
8.3.1 Packing Loan 366
8.3.2 Outward Bills 367
8.3.3 Discounting of a Bill of
Exchange 368
8.3.4 Banker’s Acceptance 368
8.3.5 Forfaiting 369
8.3.6 Factoring 371
8.3.7 Financing Under Export Credit
Insurance 374