A. The remitting bank … the collecting bank
B. The principal … the drawee
5. Answer the following questions
C. The principal … the remitting bank D. The drawee .. the collecting bank
1) What is a collection in the international settlement?
After the exporter has shipped the goods or rendered services to his customers abroad, he
draws a bill of exchange on the latter with or without shipping documents attached thereto and then gives the draft to his bank together with his appropriate collection instructions. 2) What are the parties of a collection?
They are exporters, importers, remitting banks and collecting banks. 3) What is a documentary collection?
A documentary collection is an operation in which a bank collects payment on behalf of the seller (the principal) by delivering documents to the buyer.
4) How many types of documentary collection are there and what are they?
There are two types of documentary collection: documents against payment and documents against acceptance.
5) What does URC522 refer to?
The Uniform Rules for Collections (URC) form an internationally accepted code of practice covering documentary collections.
6) What are the duties of remitting bank and collecting bank?
Duties of the remitting bank and the collecting bank are documents pressing and operation upon the international practice and customs. Chapter 7
1.Put the following phrases into English 商业用途 有条件的付款承诺 契约安排 付款义务 独立责任 commercial utility conditional undertaking of payment contractual arrangement obligation of payment independent responsibility 2.Put the following sentences into English
1) 在此契约安排下的每一项条款都是独立的。
Each item in contracts in this arrangement is independent of one another. 2) 进口商也要对远期汇票进行承兑并到期付款。
An importer is also obliged to make an acceptance on the term bill of exchange and make payment on its due.
3) 既然大多数的信用证都是不可撤销的，故此滋养印就在开证申请书上。
Since the great majority of credits are irrevocable, the indication of irrevocability is printed in the application form.
4) 出口商在向他的银行提示单据前就应确信其单据满足了信用证的要求。
Before the exporter presents the documents to his bank, he must ensure that they fully meet the requirements laid down in the credit.
5) 银行必须根据信用证的条款和要求仔细地审核单据。
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The bank must check the presented documents carefully against the wording of the terms of credit. 3. True or False
1) Three parties are involved in the contracted arrangement concerning a documentary
credit.(T) 2) The credit follows principles of independence and abstraction.(T) 3) The documents and the goods are not separated from each other.(F)
4) As long as the documents presented by the beneficiary are in complete compliance with the
terms and conditions of the credit, the issuing bank or the bank nominated by the credit
shall fulfill the undertaking to pay, accept or negotiate.(T)
5) As for the exporter’s bank, it will pay or negotiate against documents presented by the
exporter provided that they are in compliance with the terms and conditions of the credit.(T)
6) The importer may not reject to issue the credit of the exporter does not effect performance bond upon the stipulation on the sales contract.(F) 4.Multiple Choice D. inquire into the customer’s credit 1) A letter of credit is __B__ A. a formal guarantee of payment
B. a conditional undertaking to make
payment
C. an unconditional undertaking to make payment
D. a two bank guarantee of payment 2) A revocable credit cannot be amended or
cancelled only after __C__ A. the documents under it have been
honored B. it has been amended once
C. the advising bank has notified the
beneficiary of its opening D. it has been confirmed by a
correspondent bank 3) __D__ gives the beneficiary a double
assurance of payment.
A. An irrevocable credit B. A revocable credit C. A confirmed credit
D. An irrevocable confirmed credit
4) Before opening a credit, the issuing bank
should __D__ A. go through the contract terms B. fill in the application form
C. sign an agreement with the
customer
standing
5) Settlement by documentary credit is fair
to __B__ A. the shipping company
B. the trading companies concerned C. the banks involved D. all of the above
6) In credit transactions, the goods and the
documents are sent to the importer
__A__ A. in different ways B. in the same way
C. in different directions D. at one time
7) The exporter can receive the payment
only when __C__ A. he has shipped the goods
B. he has presented the documents C. the documents presented comply
with he credit terms D. the importer has taken delivery of the goods
8) Banks are obligated to verify the documents received to see that __C__ A. they are authentic B. they are regular
C. they are those listed in the collection order
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D. they are in the right form
5. Answer the following questions
1) What are the roles of a letter of credit?
Letter of Credit is a popular method of payment in international trade and one of the most important methods of financing. It plays an important role in the guarantee and financing of trade in the international trade.
2) What are the primary parties of a letter of credit?
The primary parties to a Letter of Credit are the applicant, the issuing bank and the beneficiary.
3) What should the exporter do in a letter if credit?
The exporter should dispatch the goods or perform the service on time and prepare the documents required under the credit to be ready for presentation,
4) How do you understand a bill of lading?
A bill of lading, the most important document in overseas transactions, is a document
evidencing shipment. I t is issued by the carrier or his agent as a receipt for goods accepted for carriage by sea. It also contains the terms and conditions of the contract of carriage. A bill of lading is a document of title. Only the holder of the bill of lading can take possession of the goods. It is usually made out to order and can therefore be transferred by endorsement.
Chapter 8
1.Put the following phrases into English 全球金融市场 破产法 合同义务 信用评估 经济衰退 global financial market bankruptcy law contractual obligation credit evaluation economic recession
2.Put the following sentences into English
1) 用于国际贸易中的保函分为两类：直接保函和间接保函。
The guarantees used in international business can be divided into two categories: direct guarantees and indirect guarantees.
2) 银行开具各种类型的保函：投标保函、履约保函、预付款保函、尾款保函。
Banks issue various types of guarantee or bond, and they are bid bonds, performance bonds, maintenance or retention bonds.
3) 预付款保函向买方提供了一个资金安全的保证。
The advance payment guarantee provides financial security to the buyer. 4) 开立传统的信用证是为了国际贸易中货物交易的付款。
The traditional documentary letter of credit serves the purpose of securing payment of the contract price in the international trade of goods.
5) 信用证和保函的主要不同点是：信用证是一个付款工具，而保函是一个合同义务被履行
的保证。
The main difference between a letter of credit and a guarantee is that the letter of credit actually represents a payment instrument while the guarantee is an assurance that contractual obligations will be fulfilled.
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3. True or False
1) Bank guarantees are written instruments issued by banks to an overseas buyer if the seller
fails to fulfill his obligations under a contract.(T)
2) Most bank guarantees are intended to secure the buyer’s commitment to deliver the goods
or to render a service in a correct fashion.(F) 3) A bank guarantee is not a unilateral contract between a bank as guarantor and a beneficiary
as warrantee, in which the bank undertakes to make payment to the beneficiary within the limits of a stated sum of money if a third party fails to perform an obligation.(F)
4) The nature of a standby letter of credit is ,to give a security similar to a bank guarantee.(T) 5) The key feature of standby L/C is that they are usually not listed on the issuer’s or
beneficiary’s balance sheet.(T) 4.Multiple Choice
1) A bond is a guarantee to __A__ that
_____ will fulfill his contractual
obligations.
A. the buyer.. . that exporter B. the exporter.. . that buyer C. the guarantor… the buyer D. the exporter.. . that guarantor 2) one of the main functions of a banker is
to accept __D__ from the customers.
A. B. C. D.
money cash advance deposit
B. creditor C. mortgagee
D. lender
4) the bond should state that claims must
be received __D__ than the expiry date.
A. a little earlier B. a little later C. not earlier
D. not later
5) The borrower will use the __B__ of the
facility for financing of said contract. A. margin
B. proceeds C. profits D. interests
3) All guarantees should include the
principal debtor, the __A__ and the
guarantor.
A. beneficiary
5. Answer the following questions 1) What is a bank guarantee?
A bank guarantee is a unilateral contract between a bank as guarantor and a beneficiary as warrantee, in which the bank undertakes to make payment to the beneficiary within the limits of a stated sum of money of a third party fails to perform an obligation. 2) When will a bid bond be used?
A bid bond will be used in the following situation: The exporter, who tenders to a project, generally of about 5 to 10 of the contract value.
3) What is the advantage for using standby letter of credit?
The development of standby letters of credit has allowed banks to avoid using up their scarce reserves but still help their customers with needed financing.
4) What is the function of a performance guarantee?
A performance guarantee is issued by a bank to the buyer or importer at the request of seller or exporter of goods or services, guaranteeing that the exporter will carry out the
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contract in compliance with the terms and specifications.
5) Why is the standby L/C so popular in banking business?
Many bankers have found it cost effective to improve their institutions’ capital-to-assets ratio either by selling loans off the balance sheet or by packaging, issuing securities against them, and setting those assets aside.
Chapter 9
1.Put the following phrases into English 法律文件 legal document 多式联运提单 面值 带有不符点的单据 指定银行 multimodal transport document face value discrepant document nominated bank 2.Put the following sentences into English
1) 出口商收到信用证后，将根据信用证的要求准备出货和缮制单据。
On receipt of a letter of credit, the exporter will prepare his shipments according to the requirements of the credit and complete the relating documents. 2) 一般来说，信用证要规定最后交单日期。
In general, the latest date of presentation is specified in the credit. 3) 在信用证业务中，银行应只审核单据。
In credit operations, banks must make examination on the basis of the documents alone. 4) 银行对没有要要求提示的单据不予理会，以避免由此而产生的拒付。
Banks should disregard conditions without stating the documents to be presented in compliance to avoid unnecessary refusal. 5) 提单是出口商和承运人之间的运输合同。
The bill of lading is an evidence of the contract for carriage between the exporter and the carrier.
3. True or False
1) If the documents appear to be inconsistent with the credit, the negotiating bank will inform
the beneficiary to amend the discrepancies.(T) 2) A credit will not fix an exact date of expiry and an effective place for presentation,(F)
3) Banks should disregard conditions without stating the documents to be presented in
compliance to avoid unnecessary refusal.(T)
4) A commercial invoice is not an import demonstration issued by the exporter.(F)
5) The value of the goods insured should be what it is required by the credit or at least 110%
of the CIF or CIP value of the goods.(T)
4.Multiple Choice
1) If a credit calls for an insurance policy,
banks will accept __A__ A. an insurance policy B. an insurance certificate
C. A or B
D. both A and B
2) The documents will not be delivered to
the buyer until __B__ A. the goods have arrived
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