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Trade Finance in Oil and Gas

PROGRAMME

DAY I Session 1  : COLLECTIONS.

• The Trade Cycle and the nature of self-liquidation of lending.
• Traditional and Contemporary Characteristics of Trade Finance.
• The influence of Risk Assessment
• Open Accounts
• Inwards and Outwards Documentary Collections Mechanics.
• The Risks and Rules of Collections against Acceptance and Payment.
• ICC 522
• Case Study 1 Checking Documents under a Collections schedule.

 
DAY I Session 2 Documents

• In depth study of Bills of Exchange
• Legal positions of Holders and Holders in Due Course.
• The Paramount title to a Bill of Exchange
• Drafts and Promissory notes.
• Bills of Exchange under Letters of Credit and Collections
• Exercises in the Law of Negotiaton and Bills of Exchange
• Bills of Exchange and Promissory notes compared
• Invoices , Types of Invoice and ICC 600 position on Invoices
• Third Party “Expert” documents including SGS Certificates, Consular and Legalised documents.

DAY 1 Session 3 Transport and Cargo Documents

• Bills of Lading (Clean and Claused)
• Ocean and Marine Bills, Through Bills, Short-form, Received for Shipment Bills, Multi-modal bills and Mate’s Receipts explained. Negotiable and Quasi-Negotiable documents.
• The “Missing” Bill syndrome.
• Charter party documents.
• Rail Waybills
• Air Waybills and their practical use and mechanics.
• Cargo Insurance, All Risks and other policies.

DAY 1 Session 4 GROUP WORKSHOP.
A number of questions are being asked about apparent discrepancies in a Letter of Credit and the documents tendered by the Beneficiary.
Delegates answer these questions in groups utilising the Uniform Customs and Practice ICC 600
This will enable all delegates to thoroughly understand all aspects of UCP ICC 600.
   
 DAY 2 1 Session 5 LETTERS OF CREDIT and the DOCRINE of STRICT COMPLIANCE

• A Mechanics overview of all potential contracts in a Letter of Credit
• Applicant/Issuing Bank, Issuing Bank/Advising and/or Confirming Bank, Applicant / Beneficiary
• What Strict Compliance means in practice.
• Substantial Compliance
• What are discrepancies and how we determine a “Real” discrepancy.
• Case Studies on Discrepancies
• How to respond to discrepancies utilising Best International Banking Practice.

DAY 2 SESSION SIX      

GROUP WORKSHOP  CHECKING THE LETTER OF CREDIT..
The Central Group Workshop. Delegates, presented with a set of documents presented under an L/C decide what the discrepancies are, their nature and their effect upon the tender of document

DAY 2 SESSION 7 Methods of Payment under ICC 600

• Sight Payment and Negotiation.  
• What Negotiation really means under ICC 600
• Acceptance L/Cs.
• Deferred Payment Letters of Credit. Why no bills of exchange?
• Calculating Maturity dates.
• Case Study 1 Presented with several letters of credit, delegates evaluate their payment mechanisms and risks and who takes the risks in :- Sight Payment Letters of Credit, Acceptance Letters of Credit, Negotiation Sight and Usance Letters of Credit, Acceptance Credits and Deferred Payment Letters of Credit..

DAY 2 SESSION 8 INCOTERMS 2010.

A step by step guide to all Incoterms 2010 from Ex-Works to DDP with an analysis of their effects upon documents.

DAY 2 SESSION 9 LETTER OF CREDIT VARIANTS IN PRACTICE.

• How Deferred Payment Letters of Credit Work, their Mechanics and Discounting.
• Comparing Standby Letters of Credit and Deferred Payment Letters of Credit.
• New Uses for Standby L/Cs.

DAY 2 SESSION 10 GROUP WORKSHOP STRUCTURING THE DELIVERY OF AN OIL BY-PRODUCT WITH AN INCOMING ORDER AND AN EXTERNAL TRADE.

DAY 3 SESSION 11 BACK to BACK LETTERS OF CREDIT, PRE-EXPORT FINANCE LETTERS of CREDIT.

• The Mechanics of Front to Back and Back to Back Letters of Credit
• Securities and pitfalls
• Stretching Front-to-Back-Back-to Front Financing.
• Counter L/Cs with e-Working Capital Platforms and the Supply Chain
• Front-to-Back and Back to Back variations.
• Red Clause (Pre Export Finance Letters of Credit and Generic types.
• Green Clause Letters of Credit.

Day 3 Session 12 Guarantees

• Conditional BID BONDS with examples and risk profile.
• Conditional and Unconditional Performance Bonds.
• The Risk profile of Performance bonds with case studies.
• ADVANCE PAYMENT BONDS their use, mechanics and risk profiles.
• Retention Money and Maintenance Bonds.
• Can we look to the underlying contract ? Primary and Secondary views of Bonds and Guarantees.

NEW ICC Uniform Demand Guarantee Rules

• ICC Regulations and Conventions
• Conflicts of Law.
• Overall Bond Risk Assessment.

Day 3 Session 13.  GROUP WORKSHOP.

Delegates are presented with a problem guarantee with two, distinct views in the bank about about (a) What type of Guarantee it is, (b) How and when to call the Guarantee. The Groups take sides and decide.

Day 3 Session 14. HOW TO AVOID BECOMING AN UNWITTING MONEY LAUNDERER and FRAUD AVOIDANCE SCHEMES with PRACTICAL EXAMPLES.

DAY 4 Session 15.  Guarantee and L/C fraud in Court.

• The Primary and Secondary  Jurisprudence of Bank Guarantees.
• The Edward Owen  v Barclays Case. (UK)
• The difficulty of establishing fraud in the Law Merchant.
• The Szteyn case
• United City Merchants v Royal Bank of Canada.
• Pre and Post Hostage Iranian/USA case
• An in-depth  view of Banco Santander v Bayfern. (UK) and the implications of UCP ICC 600

DAY 4 SESSION 16  WAREHOUSE FINANCING

• Warehouse Receipt/Warrant financing
• Warehouse Warrants and Receipts
• Safe and Effective Commodity Financing.
• Bonded and Unbonded Warehouse Risks.
• Effective Collateral Management.
• Structured Inventory Solutions. An analysis of structures. (A) Repo. Financing, fixed price purchase solution to working capital financing.
• “Just in Time” Supplier agreement including the constructive purchase of in-bound commodities and release to agri-processors against pre-sold contracts.
• Pre-Receivable Purchase Agreement with discounts and margins against some stockpiled goods against sales contracts.

DAY 4 SESSION 17 GROUP WORKSHOP. VIENNA ENERGY.
A new market has opened up but the importing client is offering 2 very different methods of paying. Which will the Group choose and why?

DAY 5 SESSION 18  PROBLEM SOLVING and TROUBLE-SHOOTING. All with Case Studies.

• The Issuing Bank rejects documents under an L/C and tell us that we have tendered discrepant documents when you are sure we have not !a step by step guide to steps you should take.
• We have been given an “Extend or Pay” ultimatum under an unconditional Bond !
• Our Client suspects that the whole deal is fraudulent. Action Steps.
• The Country of the Issuing Bank has issued a moratorium on hard currencies our client says that they cannot do anything about it.
• Our consignment of product ha gone missing.
• Question and Answer Session covering all problem situations.

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