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CSDG Certification Exam Contents
 










CSDG Exam:  Principles and Practices of Demand Guarantees

Learning Objectives:

The lecture focusing on the importance of rules, practices and guidelines for demand guarantees and standby letters of credit. After studying this lecture;

  1. You should understand types, definitions, rules and processes of demand guarantees.
  2. You will be able understand terminology related to draft, issue and claim on demand guarantees and standby letters of credit. 
  3. You will be able to identify the roles, obligations and relationship between parties to demand guarantee transactions. 
  4. You should be able to identify the risks involved in demand guarantee transactions and be able to manage those risks. 
  5. You should be able to identify the external factors that can affect demand guarantees and standby credits. 






























CSDG Certificate Content Outline




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Understanding CSDG exam contents: What are the learning outcomes and assessment criteria of CSDG examination? 

There is only one unit exists in a CSDG examination that CSDG candidates are responsible for. This single lecture is called: "Principles and Practices of Demand Guarantees". 





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Learning Outcome 

The learner will: 

Assessment Criteria 

The learner can: 


  • Understand the features, lifecycle, rules and parties to demand guarantees and standby letters of credit and how they are applied within international trade finance contexts. 
  • Distinguish between the different types of demand guarantees, standby letters of credit and suretyships and the requirements, role of the parties involved and the lifecycle of each. 
  • Identify the problems, risks, rules and external factors associated with demand guarantees and standby letters of credit and explain the effect these factors have
  • Be able to manage demand guarantees and standby letters of credit. 

  • Apply appropriate rules and trade terms that govern demand guarantees and standby letters of credit to the management of demand guarantees and standby letters of credit. 
  • Check accuracy of demand guarantee and standby letter of credit documents. 

Learning Outcome 


Assessment Criteria 



  • Understand the features, lifecycle, rules and parties to demand guarantees and standby letters of credit and how they are applied within international trade finance contexts. 
  • Demand guarantee definitions 
• What is a demand guarantee? 
• What is a standby letter of credit? 
  • Key features of guarantees, suretyships, and standby letters of credit, including: 
• What they are 
• Documents required 
• Comparison with demand guarantees and with each other 
  • Rules, standards and guidelines that govern demand guarantees and standby letters of credit: 
• Scope and application of the rules 
• URDG 758 
• ISP98 where these rules differ from URDG 758 
  • Capacity of different types of guarantee and standby letter of credit and when they are used: 
• Scope of a guarantee or standby letter of credit 
• Advantages to all parties 
• Scenarios where one type of guarantee or standby is preferred over another 
  • Relationship between parties to the demand guarantee (including advantages to each party) 
• Instructing party 
• Applicant 
• Guarantor 
• Beneficiary 
  • Process, life cycle and challenges of a demand guarantee or standby letter of credit 
• Draft 
• Issue 
• Amendments 
• Presentation 
• Examination 
• Payment 
• Termination and reduction Including: 
• Rejection (including non-complying demand, waiver, notice) 
• Transmission and translation 
  • The ways in which the rules for demand guarantees or standby letters of credit can be affected by external factors and the implications of these effects, including: 
• Indemnity for foreign laws and usages 
• Governing / national law 
• Jurisdiction 
• Force majeure 
• URDG and other ICC rules 
• Courts 
  • The risks involved in demand guarantees and standby letters of credit: 
• Risks and consequences 
• Fraud 
• Money laundering 

  • Be able to manage demand guarantees and standby letters of credit. 

• Practitioner element, putting theory in to practice.