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Archive:Letters of Credit/Types of Letters of Credit

2008-06-23T06:35:31Z

203.33.133.31: /* Unconfirmed */

{{TF4.5}}

==Types of Letters of Credit==
===Revocable===
A revocable letter of credit is one which can be amended or cancelled by the applicant or the issuing bank at any time, without prior notice, discussion or agreement with the beneficiary. A revocable letter of credit offers no protection to the beneficiary and is seldom if ever used.

===Irrevocable===
An irrevocable letter of credit can not be amended or revoked without the agreement of ALL the parties to the letter of credit, so it provides the assurance that providing the beneficiary complies with the terms, he/she will be paid for the goods or services. Under UCP 500, a letter of credit is deemed irrevocable unless otherwise stated.

===Unconfirmed===
An unconfirmed irrevocable letter of credit provides a commitment by the issuing bank to pay, accept, or negotiate a letter of credit. An advising bank forwards the letter of credit to the beneficiary without responsibility or undertaking on its part except that it must use reasonable care to check the authenticity of the credit which it advised. It does not provide a commitment from the advising bank to pay, so the beneficiary is reliant upon the undertaking of the overseas bank. The beneficiary is not protected from the credit risk of the issuing bank nor the country risk.

===Confirmed===
A confirmed irrevocable letter of credit is one to which the advising bank adds its confirmation, makes its own independent undertaking to effect payment, negotiation or acceptance, providing documents are presented which comply with the terms of the letter of credit. The advising bank, which may also be the confirming bank, assumes the country (political and economic) risk of the applicant’s country as well as the credit risk, failure and default of the issuing bank and effects payment to the beneficiary without recourse.

In order for a letter of credit to be confirmed, a bank accepting this risk would have a correspondent relationship with the issuing bank. If the advising bank does not have such a relationship, the letter of credit can be confirmed by an independent bank. The negative aspect here is the cost of adding another bank to the scenario.

A seller should consider requesting a confirmed credit when
*the credit standing of the issuing bank is unknown to the seller or viewed by the seller as questionable.
*exchange controls in the buyer’s country may prevent local banks from honoring certain external payments.
*the importing country is suffering economic difficulties: large external debt and/or high debt service ratios, a persistent negative balance of payments, or a record of being late or having defaulted on its international payments.

===Transferable Credit===
Under a transferable letter of credit a beneficiary (the first beneficiary) can ask the issuing/advising/confirming bank to transfer the letter of credit in whole or in part to another party/ies such as supplier/s (second beneficiary/ies). A transferable letter of credit is usually used when the beneficiary is not the manufacturer/original supplier of some/all of the goods/services. This process enables the beneficiary to pay the manufacturer/original supplier by letter of credit. If the bank agrees, this bank, referred to as the transferring bank, advises the letter of credit to the second beneficiary/ies in the terms and conditions of the original letter of credit with certain constraints defined in Article 48 of UCP 500.

In general, unless the letter of credit states that it is transferable, it is considered non-transferable.

===Assignment of Proceeds===
The right to the proceeds of a letter of credit can sometimes be assigned where the beneficiary of a letter of credit is not the actual supplier of all or part of the letter of credit and wants the bank to pay the supplier out of funds received from the letter of credit. The beneficiary may choose this option if he or she
*does not want to request a transferable letter of credit from a buyer in order to keep the buyer from knowing who is the actual supplier of the goods.
*does not have the necessary credit with the bank to issue a new letter of credit to a supplier.

An assignment of proceeds takes the form of an irrevocable instruction from the beneficiary to the bank requesting that it pay the supplier out of the proceeds of the letter of credit which becomes due when documents are presented in compliance with the terms of the letter of credit.

===Revolving===
Although infrequently used today, revolving letters of credit were a tool created to allow companies conducting regular business to issue a letter of credit that could “roll-over” without the company having to reapply, thus enabling business flow to continue without interruption as long as the terms and conditions, quantities, and other transaction details did not change. In addition, if a letter of credit were a revolving one, there were few ways to stop it from rolling over; so, should a conflict arise between the parties while the letter of credit was in place or should the products change, there was little recourse for either party. In the business world today, the fact is that, unless required by law or because of high risk, on-going business is usually conducted without of letters of credit

===Standby===
As is the case with the revolving letter of credit, standby letters of credit are infrequently used today. A standby letter of credit is one which is issued as a back-up or form of insurance for the seller should the buyer default on the agreed-upon payment terms. A standby letter of credit is issued in the same way a documentary credit is in that the collateral needed for issuance is required by the issuing bank and the beneficiary must comply with every detail as outlined in the letter of credit. The problem with this instrument is that the applicant has no guarantee, other than the seller’s word, that the standby will not be drawn against even if payment is made as agreed. This situation is challenging, especially if the letter of credit is confirmed and the advising bank sees only documents pertaining to the shipment as outlined in the letter of credit and has no knowledge of other payments being made.

<div style="float:right;">[[Letters of Credit/Letters of Credit|Prev]] | [[Letters of Credit/Summary|Next]]

[[Category:International Business]]

Archive:Letters of Credit/Types of Letters of Credit

2008-06-23T06:34:57Z

203.33.133.31: /* Transferable Credit */

{{TF4.5}}

==Types of Letters of Credit==
===Revocable===
A revocable letter of credit is one which can be amended or cancelled by the applicant or the issuing bank at any time, without prior notice, discussion or agreement with the beneficiary. A revocable letter of credit offers no protection to the beneficiary and is seldom if ever used.

===Irrevocable===
An irrevocable letter of credit can not be amended or revoked without the agreement of ALL the parties to the letter of credit, so it provides the assurance that providing the beneficiary complies with the terms, he/she will be paid for the goods or services. Under UCP 500, a letter of credit is deemed irrevocable unless otherwise stated.

===Unconfirmed===
An unconfirmed irrevocable letter of credit provides a commitment by the issuing bank to pay, accept, or negotiate a letter of credit. An advising bank forwards the letter of credit to the beneficiary without responsibility or undertaking on its part except that it must use reasonable care to check the authenticity of the credit which it advised. It does not provide a commitment from the advising bank to pay, so the beneficiary is reliant upon the undertaking of the overseas bank. The beneficiary is not protected from the credit risk of the issuing bank nor the country risk.for fjrws

===Confirmed===
A confirmed irrevocable letter of credit is one to which the advising bank adds its confirmation, makes its own independent undertaking to effect payment, negotiation or acceptance, providing documents are presented which comply with the terms of the letter of credit. The advising bank, which may also be the confirming bank, assumes the country (political and economic) risk of the applicant’s country as well as the credit risk, failure and default of the issuing bank and effects payment to the beneficiary without recourse.

In order for a letter of credit to be confirmed, a bank accepting this risk would have a correspondent relationship with the issuing bank. If the advising bank does not have such a relationship, the letter of credit can be confirmed by an independent bank. The negative aspect here is the cost of adding another bank to the scenario.

A seller should consider requesting a confirmed credit when
*the credit standing of the issuing bank is unknown to the seller or viewed by the seller as questionable.
*exchange controls in the buyer’s country may prevent local banks from honoring certain external payments.
*the importing country is suffering economic difficulties: large external debt and/or high debt service ratios, a persistent negative balance of payments, or a record of being late or having defaulted on its international payments.

===Transferable Credit===
Under a transferable letter of credit a beneficiary (the first beneficiary) can ask the issuing/advising/confirming bank to transfer the letter of credit in whole or in part to another party/ies such as supplier/s (second beneficiary/ies). A transferable letter of credit is usually used when the beneficiary is not the manufacturer/original supplier of some/all of the goods/services. This process enables the beneficiary to pay the manufacturer/original supplier by letter of credit. If the bank agrees, this bank, referred to as the transferring bank, advises the letter of credit to the second beneficiary/ies in the terms and conditions of the original letter of credit with certain constraints defined in Article 48 of UCP 500.

In general, unless the letter of credit states that it is transferable, it is considered non-transferable.

===Assignment of Proceeds===
The right to the proceeds of a letter of credit can sometimes be assigned where the beneficiary of a letter of credit is not the actual supplier of all or part of the letter of credit and wants the bank to pay the supplier out of funds received from the letter of credit. The beneficiary may choose this option if he or she
*does not want to request a transferable letter of credit from a buyer in order to keep the buyer from knowing who is the actual supplier of the goods.
*does not have the necessary credit with the bank to issue a new letter of credit to a supplier.

An assignment of proceeds takes the form of an irrevocable instruction from the beneficiary to the bank requesting that it pay the supplier out of the proceeds of the letter of credit which becomes due when documents are presented in compliance with the terms of the letter of credit.

===Revolving===
Although infrequently used today, revolving letters of credit were a tool created to allow companies conducting regular business to issue a letter of credit that could “roll-over” without the company having to reapply, thus enabling business flow to continue without interruption as long as the terms and conditions, quantities, and other transaction details did not change. In addition, if a letter of credit were a revolving one, there were few ways to stop it from rolling over; so, should a conflict arise between the parties while the letter of credit was in place or should the products change, there was little recourse for either party. In the business world today, the fact is that, unless required by law or because of high risk, on-going business is usually conducted without of letters of credit

===Standby===
As is the case with the revolving letter of credit, standby letters of credit are infrequently used today. A standby letter of credit is one which is issued as a back-up or form of insurance for the seller should the buyer default on the agreed-upon payment terms. A standby letter of credit is issued in the same way a documentary credit is in that the collateral needed for issuance is required by the issuing bank and the beneficiary must comply with every detail as outlined in the letter of credit. The problem with this instrument is that the applicant has no guarantee, other than the seller’s word, that the standby will not be drawn against even if payment is made as agreed. This situation is challenging, especially if the letter of credit is confirmed and the advising bank sees only documents pertaining to the shipment as outlined in the letter of credit and has no knowledge of other payments being made.

<div style="float:right;">[[Letters of Credit/Letters of Credit|Prev]] | [[Letters of Credit/Summary|Next]]

[[Category:International Business]]

Archive:Letters of Credit/Types of Letters of Credit

2008-06-23T06:34:23Z

203.33.133.31: /* Transferable Credit */

{{TF4.5}}

==Types of Letters of Credit==
===Revocable===
A revocable letter of credit is one which can be amended or cancelled by the applicant or the issuing bank at any time, without prior notice, discussion or agreement with the beneficiary. A revocable letter of credit offers no protection to the beneficiary and is seldom if ever used.

===Irrevocable===
An irrevocable letter of credit can not be amended or revoked without the agreement of ALL the parties to the letter of credit, so it provides the assurance that providing the beneficiary complies with the terms, he/she will be paid for the goods or services. Under UCP 500, a letter of credit is deemed irrevocable unless otherwise stated.

===Unconfirmed===
An unconfirmed irrevocable letter of credit provides a commitment by the issuing bank to pay, accept, or negotiate a letter of credit. An advising bank forwards the letter of credit to the beneficiary without responsibility or undertaking on its part except that it must use reasonable care to check the authenticity of the credit which it advised. It does not provide a commitment from the advising bank to pay, so the beneficiary is reliant upon the undertaking of the overseas bank. The beneficiary is not protected from the credit risk of the issuing bank nor the country risk.for fjrws

===Confirmed===
A confirmed irrevocable letter of credit is one to which the advising bank adds its confirmation, makes its own independent undertaking to effect payment, negotiation or acceptance, providing documents are presented which comply with the terms of the letter of credit. The advising bank, which may also be the confirming bank, assumes the country (political and economic) risk of the applicant’s country as well as the credit risk, failure and default of the issuing bank and effects payment to the beneficiary without recourse.

In order for a letter of credit to be confirmed, a bank accepting this risk would have a correspondent relationship with the issuing bank. If the advising bank does not have such a relationship, the letter of credit can be confirmed by an independent bank. The negative aspect here is the cost of adding another bank to the scenario.

A seller should consider requesting a confirmed credit when
*the credit standing of the issuing bank is unknown to the seller or viewed by the seller as questionable.
*exchange controls in the buyer’s country may prevent local banks from honoring certain external payments.
*the importing country is suffering economic difficulties: large external debt and/or high debt service ratios, a persistent negative balance of payments, or a record of being late or having defaulted on its international payments.

===Transferable Credit===
Under a transferable letter of credit a beneficiary (the first beneficiary) can ask the issuing/advising/confirming bank to transfer the letter of credit in whole or in part to another party/ies such as supplier/s (second beneficiary/ies). A transferable letter of credit is usually used when the beneficiary is not the manufacturer/original supplier of some/all of the goods/services. This process enables the beneficiary to pay the manufacturer/original supplier by letter of credit. If the bank agrees, this bank, referred to as the transferring bank, advises the letter of credit to the second beneficiary/ies in the terms and conditions of the original letter of credit with certain constraints defined in Article 48 of UCP 500.

In general, unless the letter of credit states that it is transferable, it is considered non-transferable.kljlkjlkj

===Assignment of Proceeds===
The right to the proceeds of a letter of credit can sometimes be assigned where the beneficiary of a letter of credit is not the actual supplier of all or part of the letter of credit and wants the bank to pay the supplier out of funds received from the letter of credit. The beneficiary may choose this option if he or she
*does not want to request a transferable letter of credit from a buyer in order to keep the buyer from knowing who is the actual supplier of the goods.
*does not have the necessary credit with the bank to issue a new letter of credit to a supplier.

An assignment of proceeds takes the form of an irrevocable instruction from the beneficiary to the bank requesting that it pay the supplier out of the proceeds of the letter of credit which becomes due when documents are presented in compliance with the terms of the letter of credit.

===Revolving===
Although infrequently used today, revolving letters of credit were a tool created to allow companies conducting regular business to issue a letter of credit that could “roll-over” without the company having to reapply, thus enabling business flow to continue without interruption as long as the terms and conditions, quantities, and other transaction details did not change. In addition, if a letter of credit were a revolving one, there were few ways to stop it from rolling over; so, should a conflict arise between the parties while the letter of credit was in place or should the products change, there was little recourse for either party. In the business world today, the fact is that, unless required by law or because of high risk, on-going business is usually conducted without of letters of credit

===Standby===
As is the case with the revolving letter of credit, standby letters of credit are infrequently used today. A standby letter of credit is one which is issued as a back-up or form of insurance for the seller should the buyer default on the agreed-upon payment terms. A standby letter of credit is issued in the same way a documentary credit is in that the collateral needed for issuance is required by the issuing bank and the beneficiary must comply with every detail as outlined in the letter of credit. The problem with this instrument is that the applicant has no guarantee, other than the seller’s word, that the standby will not be drawn against even if payment is made as agreed. This situation is challenging, especially if the letter of credit is confirmed and the advising bank sees only documents pertaining to the shipment as outlined in the letter of credit and has no knowledge of other payments being made.

<div style="float:right;">[[Letters of Credit/Letters of Credit|Prev]] | [[Letters of Credit/Summary|Next]]

[[Category:International Business]]

Archive:Letters of Credit/Types of Letters of Credit

2008-06-23T06:34:02Z

203.33.133.31: /* Unconfirmed */

{{TF4.5}}

==Types of Letters of Credit==
===Revocable===
A revocable letter of credit is one which can be amended or cancelled by the applicant or the issuing bank at any time, without prior notice, discussion or agreement with the beneficiary. A revocable letter of credit offers no protection to the beneficiary and is seldom if ever used.

===Irrevocable===
An irrevocable letter of credit can not be amended or revoked without the agreement of ALL the parties to the letter of credit, so it provides the assurance that providing the beneficiary complies with the terms, he/she will be paid for the goods or services. Under UCP 500, a letter of credit is deemed irrevocable unless otherwise stated.

===Unconfirmed===
An unconfirmed irrevocable letter of credit provides a commitment by the issuing bank to pay, accept, or negotiate a letter of credit. An advising bank forwards the letter of credit to the beneficiary without responsibility or undertaking on its part except that it must use reasonable care to check the authenticity of the credit which it advised. It does not provide a commitment from the advising bank to pay, so the beneficiary is reliant upon the undertaking of the overseas bank. The beneficiary is not protected from the credit risk of the issuing bank nor the country risk.for fjrws

===Confirmed===
A confirmed irrevocable letter of credit is one to which the advising bank adds its confirmation, makes its own independent undertaking to effect payment, negotiation or acceptance, providing documents are presented which comply with the terms of the letter of credit. The advising bank, which may also be the confirming bank, assumes the country (political and economic) risk of the applicant’s country as well as the credit risk, failure and default of the issuing bank and effects payment to the beneficiary without recourse.

In order for a letter of credit to be confirmed, a bank accepting this risk would have a correspondent relationship with the issuing bank. If the advising bank does not have such a relationship, the letter of credit can be confirmed by an independent bank. The negative aspect here is the cost of adding another bank to the scenario.

A seller should consider requesting a confirmed credit when
*the credit standing of the issuing bank is unknown to the seller or viewed by the seller as questionable.
*exchange controls in the buyer’s country may prevent local banks from honoring certain external payments.
*the importing country is suffering economic difficulties: large external debt and/or high debt service ratios, a persistent negative balance of payments, or a record of being late or having defaulted on its international payments.

===Transferable Credit===
Under a transferable letter of credit a beneficiary (the first beneficiary) can ask the issuing/advising/confirming bank to transfer the letter of credit in whole or in part to another party/ies such as supplier/s (second beneficiary/ies). A transferable letter of credit is usually used when the beneficiary is not the manufacturer/original supplier of some/all of the goods/services. This process enables the beneficiary to pay the manufacturer/original supplier by letter of credit. If the bank agrees, this bank, referred to as the transferring bank, advises the letter of credit to the second beneficiary/ies in the terms and conditions of the original letter of credit with certain constraints defined in Article 48 of UCP 500.

In general, unless the letter of credit states that it is transferable, it is considered non-transferable.

===Assignment of Proceeds===
The right to the proceeds of a letter of credit can sometimes be assigned where the beneficiary of a letter of credit is not the actual supplier of all or part of the letter of credit and wants the bank to pay the supplier out of funds received from the letter of credit. The beneficiary may choose this option if he or she
*does not want to request a transferable letter of credit from a buyer in order to keep the buyer from knowing who is the actual supplier of the goods.
*does not have the necessary credit with the bank to issue a new letter of credit to a supplier.

An assignment of proceeds takes the form of an irrevocable instruction from the beneficiary to the bank requesting that it pay the supplier out of the proceeds of the letter of credit which becomes due when documents are presented in compliance with the terms of the letter of credit.

===Revolving===
Although infrequently used today, revolving letters of credit were a tool created to allow companies conducting regular business to issue a letter of credit that could “roll-over” without the company having to reapply, thus enabling business flow to continue without interruption as long as the terms and conditions, quantities, and other transaction details did not change. In addition, if a letter of credit were a revolving one, there were few ways to stop it from rolling over; so, should a conflict arise between the parties while the letter of credit was in place or should the products change, there was little recourse for either party. In the business world today, the fact is that, unless required by law or because of high risk, on-going business is usually conducted without of letters of credit

===Standby===
As is the case with the revolving letter of credit, standby letters of credit are infrequently used today. A standby letter of credit is one which is issued as a back-up or form of insurance for the seller should the buyer default on the agreed-upon payment terms. A standby letter of credit is issued in the same way a documentary credit is in that the collateral needed for issuance is required by the issuing bank and the beneficiary must comply with every detail as outlined in the letter of credit. The problem with this instrument is that the applicant has no guarantee, other than the seller’s word, that the standby will not be drawn against even if payment is made as agreed. This situation is challenging, especially if the letter of credit is confirmed and the advising bank sees only documents pertaining to the shipment as outlined in the letter of credit and has no knowledge of other payments being made.

<div style="float:right;">[[Letters of Credit/Letters of Credit|Prev]] | [[Letters of Credit/Summary|Next]]

[[Category:International Business]]

Aboriginal education in primary schools

2007-10-15T02:39:15Z

203.33.167.32: New page: Many factors influence aboriginal education within Australia, from clothing to community housing and there piers in the class room environment. Mental illness is one of the major factors i...

Many factors influence aboriginal education within Australia, from clothing to community housing and there piers in the class room environment. Mental illness is one of the major factors in a child’s education, from northern Australia to the cities such as Sydney and Brisbane and Adelaide. As a child’s first and most important teacher role model you as a teacher play an important role in helping the child to acquire foundation skills of future learning, language and communication skills, motor skills, social and emotional and behavioural ,cognitive and emergent – level cognitive reasoning/thinking skills which assist in the child’s development immediately and in latter life. Many factors influence student success at school. Among these, consistent attendance is often cited as important, but a range of other factors also influence the way students access and engage with schooling The main aim is to evaluate the impact of pre-service primary teacher education Aboriginal studies subjects on teachers self-perceived abilities to appreciate, understand and teach Aboriginal studies and perspectives in Australian schools. The studies also compared and contrasted these teachers’ self perceptions with teachers who had not undertaken an Aboriginal studies subject as part of their initial teacher education course. The project sought to identify useful structure and content that would strengthen teacher’s ability to teach Aboriginal studies and Aboriginal students.
Analysis of data found that pre-service of Aboriginal studies make a positive difference for teachers. Teachers felt they knew more about Aboriginal history, current issues, pedagogy for teaching Aboriginal studies and generally were more effective teachers for Aboriginal students. These findings also offer insights into how to strengthen Aboriginal studies courses
Health is an issue for a lot of families and I’m realising that more and more. We find that many of our children don’t have breakfast or if they do, it won’t be much. So we work on having some brain food available for kids to graze on in the morning session. In the classroom fridges you’ll find cheese-sticks and popcorn. Until the cyclone we had bananas too, and we will reintroduce them again as soon as we can afford it. All children have a water bottle on their desks, so that we can ensure they are well hydrated.
Being able to access school programs requires more than just attendance. Students who are hungry, unwell or can’t hear the teacher properly are not in a position to learn.
It’s up to the individual teacher to manage this. Some teachers have little plates of food on the children’s desks while others just have a quick break. The point is to make sure it’s available to the children. It’s not a meal, it’s just a very small snack just to keep the brain going. We look for foods that have a relatively high GI and are easily accessible.
How we learn what we need to know: a selection of literacy and numeracy case studies from NSW primary schools that have achieved enhanced outcomes for Aboriginal students This 2000 publication presents case studies of seven New South Wales primary schools that developed educational programs and teaching strategies specifically for Aboriginal students. The aim of the case studies project was to identify programs, strategies and processes which, in the opinion of regional Aboriginal Educational consultants and the Aboriginal Education Consultative Group, work effectively with Aboriginal students, and to describe how the programs were developed.
this program acknowledges and endorses Indigenous world views and promotes greater understanding and respect for Indigenous peoples, cultures, histories and languages.
Aboriginal grandmothers (grannies) in many communities throughout Australia are considered the backbone of the social structure. This is the case for the Murri Granies in a town in regional eastern Australia. Many of these women are also their grandchildren's primary caregivers and disciplinarians, and sometimes this role is detrimental to their own care and well-being. As a response to this stress, the local Aboriginal Medical Service (AMS), which includes a comprehensive primary health care facility, began promoting the program 'Relax to the Max' to the Grannies as part of the holistic care they offer. Since these humble beginnings some three years ago, the group has grown to become the Graniators support group. In addition to their initial work of supporting each other, the group extended their field of action to the entire community to address social issues, particularly those around youth and children. To complement and strengthen their initiative, the Graniators partnered with other organizations in the community including the police, the municipal council, the state government's department of housing, the local primary school and a special youth service group. The program's evaluation has proved to be extremely positive in providing others in the community a clear and positive formula for driving change at a grass roots level

Compared with non-Indigenous Australians, Australian Aborigines have higher levels of infant mortality, more infectious diseases, and a life expectancy that is likely to be 15 to 20 years lower (Australian Bureau of Statistics, 1997, 2002). In the early childhood years (0-8 years), Indigenous students are less likely to participate in pre-schooling than their non-Indigenous peers, they have higher rates of absenteeism beginning in primary school, and the early indications of their educational achievement, as measured by state-wide English literacy assessments, indicate that, as a group, they perform at a lower level compared to their npn-Indigenous peers. Aboriginal educators (both Aboriginal teachers and Aboriginal Education Assistants) have been employed to implement appropriate learning and teaching strategies, enhance the involvement of Aboriginal families and communities in their children's schooling, and improve the learning outcomes of Aboriginal students. By focusing on effective transition to school programs, much can be done to support Aboriginal children, families, and communities and to promote positive engagement in education. In addition, they indicated that the presence of Aboriginal people within the school, such as teachers, aides, general staff, or members of school councils and committees, was crucial to helping make young Aboriginal children feel as if they belong in the school environment.