Executive Short Courses

Advanced Demand Guarantees Workshop: Managing the Risks

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 Develop a comprehensive understanding of the role of demand guarantees in international trade. 

Demand guarantees play a vital role in many aspects of international commerce, including the sale and purchase of goods, construction projects, finance, shipping and aviation. This one-day workshop provides a practical and interactive analysis of the operation of demand guarantees from the respective standpoints of the Applicant, Guarantor and Beneficiary.

The workshop will focus on issues which can give rise to problems and disputes in connection with demand guarantees and counter-guarantees. Participants will have the opportunity to consider and discuss practical case studies.


Learning outcomes

  • The use of demand guarantees and counter-guarantees in international trade, including the rights and obligations of each party. 
  • The different obligations of the Guarantor under demand guarantees and suretyship guarantees, and the importance of the distinction between these two instruments. 
  • The autonomy principle of demand guarantees and how this may be affected by factors such as compliance and fraud.
  • The operation of demand guarantees incorporating URDG758 as compared to demand guarantees with no applicable rules. Woman listening in a lecture
  • The practice and procedure for the presentation and examination of demands.
  • Potential conflicts between international practice and national law in relation to the expiry of a demand guarantee.
  • The role of national courts in issuing injunctions and resolving disputes.
  • A comparison between demand guarantees and standby letters of credit.


Who should attend? 

The workshop is aimed at all those involved in the financing, monitoring and operation of International Trade, whether working in a bank or corporate. Typical candidates who will benefit from this course include:

  • Demand Guarantee Practitioners
  • Trade Services Managers
  • Legal Specialists
  • Relationship Managers 
  • Credit Risk & Operational Risk Managers
  • Trade Compliance Managers


Course outline

Key principles in the use of demand guarantees and counter-guarantees

  • The importance of clear drafting; avoiding the confusion with traditional ‎suretyship guarantees
  • The concept of autonomy and the impact of compliance regulations; how far does the Guarantor have to understand the underlying transaction?  
  • The application of ICC rules and national law; which court can issue an injunction?
  • The advantages and disadvantages of counter-guarantees
  • Standby letters of credit; how do they compare with demand guarantees? 
  • Case studies.
Demands

  • The requirements for a complying presentation
  • The standard for examination under URDG758; how far does this differ from the standard for documentary credits under UCP600? 
  • Extend or pay demands
  • Demands under counter-guarantees
  • Case studies

Reduction and Termination

  • Reduction of the amount available under the guarantee by amendment or payment
  • Expiry dates and expiry events; how does the Guarantor know that an expiry event has occurred?
  • Return of original guarantee‎; is it necessary?
  • Case studies.

Dates and location 

Dates: 

Thursday 21 September 2017

Location:

The London Institute of Banking & Finance
Peninsular House, 36 Monument Street
London, EC3R 8LJ


Course instructor 

Stephen Tricks headshot

Stephen Tricks

Consultant, Clyde & Co LLP.

The St Botolph Building, 138 Houndsditch, London, EC3A 7AR

Stephen Tricks is an English lawyer. He was a partner at Clyde & Co LLP for over 25 years and is now a consultant with the firm. His practice is focused on international trade and commodities, and in particular on trade finance. Stephen advises trading companies and banks on security over goods, letters of credit, demand guarantees, letters of indemnity, sale contracts and carriage contracts.

Stephen lectures regularly on trade finance issues at conferences organised by the International Chamber of Commerce and other bodies. He acts as a technical consultant to the European Bank for Reconstruction & Development on its Trade Facilitation Programme.

Stephen is a member of both the Legal Committee and the Guarantees Task Force of the ICC Banking Commission. He is also a member of the ICC UK Committee on Banking Technique and Practice.

Stephen is author of A Practitioner's Guide to Demand Guarantees  published by The London Institute of Banking & Finance (2017).


Fees and registration 

  • Members  £445
  • Non-Members  £495
Registration fee includes all learning materials, lunch and refreshments. 

CSDG® and CDCS® holders will earn 6 CPD points towards recertification. All delegates will receive a complimentary copy of Stephen’s book A Practitioner's Guide to Demand Guarantees.


Register now


For further information please contact our events team on +44 (0) 20 7337 6286 or events@libf.ac.uk

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