BFM: Concepts and Practice · Part A: International Banking

Chapter 4: Letters of credit

A bank’s promise that lets strangers trade safely, and the ICC rules behind it: UCP 600, ISBP and Incoterms.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 4.1What a credit isp. 47
• 4.2The life of a creditp. 48
• 4.3Types of creditp. 49
• 4.4UCP 600: scope, definitions, datesp. 50
• 4.5Who undertakes whatp. 51
• 4.6Examining and refusing documentsp. 52
• 4.7The documentsp. 53
• 4.8Tolerances, shipments and transferp. 54
• 4.9The companion rulesp. 55
• 4.10Incoterms 2020p. 56
• 4.11Credits in Indian banksp. 57
• Exam traps and quick checksp. 58
• Practice: 20 questions in three roundsp. 59
• Answers, with every wrong option explainedp. 62
• Make it stickp. 65
• Chapter 4 on one pagep. 66

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.