Get to Know Us​​
Jade Corporate Advisors Private Limited is NOT a Lender, Investor, Financial Institution.
We are not a registered broker-dealer and do not offer investment advice or advice on raising capital through a securities offering. We do not recommend any investor make an investment in a particular company or suggest any company offer securities to a particular investor.
Instead, We focus on understanding your unique challenges and objectives through in-depth discussions and analysis, and support the implementation of solutions that drive growth and efficiency.
Credit Risk Assessment:
Lenders must carefully evaluate the creditworthiness of borrowers to minimize the risk of default, which requires thorough analysis and ongoing monitoring.
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Interest Rate Fluctuations:
Variable interest rates can increase borrowing costs unexpectedly, impacting cash flow and financial planning for borrowers.
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Debt Management:
Borrowers need to manage their borrowing carefully to avoid overextending themselves, which can lead to financial strain and potential default.
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Regulatory Compliance:
Lenders must navigate complex regulatory frameworks, ensuring that their practices align with laws and guidelines, which can be resource-intensive.
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Market Conditions:
Economic downturns or changes in market conditions can affect both borrowers’ ability to repay and lenders’ willingness to extend credit.
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Maintaining Relationships:
Both borrowers and lenders must maintain strong communication and trust to effectively manage the line of credit, which can be challenging over time.
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Operational Complexity:
Managing a line of credit involves various operational tasks, such as documentation, disbursement, and tracking payments, which can complicate the process.
Knowledge series
International Standby Practice (ISP98)
ISP is a set of rules that when incorporated into an undertaking by referencing the ISP98 or ICC publication 590, will cause the undertaking to be deemed as a Standby Letter of Credit.
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The ISP was approved and endorsed by the International Chamber of Commerce (ICC) in January 1999 (ICC publication 590).
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The ISP took more than five years to create and it was the result of interaction between individuals, banks, and national and international associations.
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The ISP98 is a copyright of the Institute of International Banking Law & Practice (IIBLP).
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ISP is not law, but it contains resemblances to USA L/C legal doctrine.
It represents a more comprehensive rule set for SBLCs versus the UCP 600.
Uniform Customs and Practice (UCP 600)
UCP is a set of rules that that when incorporated into an undertaking, willcause the undertaking to be deemed as a letter of credit.
The primary focus of the UCP is to govern commercial letters of credit. However, as noted in UCP Article 1 in parenthesis, UCP applies to standby letters of credit “to the extent to which they are applicable”.
UCP is not a law, rather a set of articles developed by the International Chamber of Commerce (ICC) Banking Commission and others. They are copyrighted by the ICC
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ICC is a non-governmental organization.
UCP was first published in 1933 making it the oldest and most legally tested rule set. Thereafter revised in 1951, 1962, 1974, 1983, 1993 and its current revision in 2007.
UCP is not as thorough on SBLC day-to-day practice. It does not address a variety of situations such as:
Receiving a document presentation which contains an extend or pay request e.g. request to extend the expiration date of the SBLC or pay the presentation Issuances of counter-SBLCs;
Examining documents against a SBLC which requires a document to make and/or complete a statement utilizing quotation marks; require a witness, etc.
What to do in cases where a beneficiary has merged or been acquired after issuance of an SBLC
Syndicated or participated deals.
Uniform Customs and Practice (UCP 600)
The URDG is a set of rules that that when incorporated into an undertaking, will cause the undertaking to be deemed a demand guarantee (DG).
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URDG 758 entered into effect July 2010 and is a complete revision of the original revision URDG 458.
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The URDG rules support demand guarantees, not surety guarantees.
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Where possible, it was aligned with the concepts of UCP 600; however, its default positions differ from UCP and ISP in a variety of manners.
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URDG 758 now has a companion document titled the International Standard Demand Guarantee Practice (ISDGP) for URDG 758 (ICC publication 814E). It supplements the URDG by identifying and recording best practice in relation to the URDG rules and beyond.