Contents 8
Ⅰ Risk and security in international trade 8
New reallties 8
The risks 10
The need for security 11
Summary of instr？ents for securing pay？ent 15
Summary of instr？ents for securing performance 18
Ⅱ The classie instruments for securing paymentDocumentary credits 22
1．Estabiishment of the credit terms 25
1.1．Basic rorms of documentary credits 25
1.2．Types of credit and special arrangements 34
2．Opening of the credit 55
2.1．Credit application 56
2.2．Notification of the issue of the credit 66
2.3．Advice or confirmation to the beneficiary 66
3．Utilization of the credit 71
3.1．Documents 72
3.2．Discrepancies in the documents 87
3.3．Settlement 87
Documentary collections 90
1．Establishment of the terms of collection 94
2．Issue of the collection order and transmission of the documents 95
2.1．Checking the docuntents 102
2.2．Forwarding the documents to the collecting bank 102
3．Presentation of the documents and settlement 102
Glossary 105
Ⅲ Instruments for securing performance 112
Why are they needed？ 112
Bank guarantees 115
1．How do bank guarantees work？ 118
2．Issue of a bank guarantee 119
4.1．Tender bond 121
4．Principal types of guarantees 121
3．Claiming ander a bank guarantee 121
4.2．Performance bond 123
4.3．Advance payment guarantee 125
5．Basis in law 127
6．Consortium operations 127
7．Other types of guarantee 129
8．Costs 130
Appendix：Glossary of terms 131
Ⅳ Security of performance cembined with security of paymentAn example 134
Appendix：Index 137
Bibliography 139