Ta b l e o f C o n t e n t s Preface Chapter 1 Letters of Credit – An Introduction 1 Trade Payment Methods 2 What Is a Letter of Credit? 2 Advantages and Risk to the Buyer 3 Advantages and Risk to the Seller 3 Letters of Credit and Contracts 3 The Parties 5 Chapter 2 Letters of Credit – The Language 7 Types of Letters of Credit 8 Revocable versus Irrevocable 8 Confirmed versus Unconfirmed 8 Recognizing Letters of Credit 12 Straight Letters of Credit 12 Letter of Credit Terms and Conditions 12 Draft 12 Expiration Date 16 Latest Shipping Date 16 Latest Date for Presentation 16 Amendments 16 Chapter 3 Letters of Credit – Avoiding Problems 19 Problem Resolution 20 Documentary Requirements 20 Chapter 4 Letters of Credit – In Action 23 Export Letters of Credit 24 Import Letters of Credit 24 Foreign Currency Letters of Credit 24 Chapter 5 Letters of Credit – Special Types 29 Revolving Letters of Credit 30 Installment Letters of Credit 30 Advance Payment Letters of Credit 30 Red Clause Letters of Credit 31 Transferable and Back-to-Back Letters of Credit 31 Transferable Letters of Credit 31 Back-to-Back Letters of Credit 34 Assignment of Proceeds 35 Simplified Letters of Credit 35 Chapter 6 Letters of Credit– Export Credit Agencies and International Development Banks 37 Export Credit Agencies 38 International Development Banks 38