STANDBY LETTER OF CREDIT (SBLC) OR BG TRANSACTION PROCEDURES
i. The Receiver shall fill, sign, seal and email the DOA to the Provider.
ii. After due diligence, the Provider shall fill and countersign the DOA “Hereby
the DOA shall be rendered as a full recourse contract”. The Provider shall
email a copy of the Contract to the Receiver.
iii. Within two (2) banking days, the Provider shall advise the issuing bank officer
to send MT799 (Pre-advise) to the Receiver’s bank. A copy of it shall be sent
both to the Provider and Receiver as proof of transmission.
iv. Within two (2) banking days of the Receiver’s bank receipt of the MT799 (pre-
advise), the Receiver’s bank officer shall reply by Bank Payment Undertaking
MT799 to the Provider’s issuing bank of its readines to accept MT760 and
undertake to pay the Invoice Price. A copy shall be sent both to the Provider
and Receiver as proof of transmission.
v. Within two (2) banking days of the Provider’s bank receipt of the BPU MT799
from the receiving bank, the Provider issuing bank shall send MT760 to the
Receiver’s bank. A copy shall be sent both to the Provider and Receiver as
proof of transmission.
vi. Within Ten (10) banking days of the Receiver’s receipt of MT760, the Receiver
shall remit the payment via wire transfer to the Provider’s nominated bank
account as stated in the Corporate Invoice and simultaneously remit the
payment of the agent’s commissions via wire transfer to their respective bank
accounts in accordance to the Irrevocable Master Fee Protection Agreement
as stated in the Contract. Copies of the wire transfer receipts shall be
emailed to the Provider and Agents for confirmation.
vii. Should Receivr default to pay the Purchase fees and Agent’s Commission
within fifteen (15) banking days of the Receiver’s receipt of the Corporate
Invoice from the Provider, the Provider shall instruct the issuing bank to put
a claim on the Standby Letter Of Credit (SBLC) hereby forcing the Receiver’s
bank to return the Standby Letter Of Credit (SBLC) to the issuing bank
immediately.
viii. Within fifteen (15) banking days of the Provider and Agents receive the
payments, the Provider’s issuing bank shall deliver the Standby Letter Of
Credit (SBLC) Hard Copy to the Receiver’s bank via bank bonded courier.
TEXT FORMAT OF SBLC SWIFT MT 760:
-------------------------------------- MESSAGE --------------------------------------
FOR VALUE RECEIVED WE, ________________________ WITH THE ADDRESS
_____________ HEREBY IRREVOCABLY AND UNCONDITIONALLY, WITHOUT
PROTEST OR NOTIFICATION, GUARANTEE PAYMENT AGAINST THIS STANDBY
LETTER OF CREDIT TO THE ORDER OF XXXXXXXXXXXXXXXXXXXXXX ,A/C
XXXXXXXXXXXXXXXXXXXXXXXXXX THE SUM OF TWO HUNDRED MILLION EUROS
(€200,000,000.000), IN THE LAWFUL CURRENCY OF THE US DOLLARS UPON
PRESENTATION TO US AT OUR COUNTERS, IN WHOLE OR IN PART, AT MATURITY
DATE OF ONE YEAR AND ONE DAY FROM THE DATE OF ISSUE __, __, 2018 AND NO
LATER THAN 20 BANKING DAYS AFTER MATURITY DATE.
SUCH PAYMENT SHALL BE MADE WITHOUT SET-OFF AND FREE AND CLEAR OF ANY
DEDUCTION OR CHARGE, FEE OR WIT HOLDING OF ANY NATURE PRESENTLY OR IN
THE FUTURE IMPOSED, LEVIED, COLLECTED, WIT HELD OR ASSESSED BY THE
GOVERNMENT OF (ISSUING COUNTRY) OR ANY POLITICAL SUBDIVISION OR
AUTHORITY THEREOF OR THEREIN.
THIS STANDBY LETTER OF CREDIT IS FREE AND CLEAR OF ANY LIEN OR
ENCUMBRANCE AND IS TRANSFERABLE, NEGOTIABLE, ASSIGNABLE, DIVISABLE
WITHOUT NOTIFICATION OR PRESENTATION TO US. ALL BANKING CHARGES ARE
FOR THE ACCOUNT OF APPLICANT.
THIS STANDBY LETTER OF CREDIT IS SUBJECT TO THE UNIFORM RULES FOR
DEMAND GUARANTEE UNDER ICC PUBLICATION NO. 500/600 UPG758, 2010
REVISION. THIS IS AN OPERATIVE INSTRUMENT AND NO CONFIRMATION WILL
FOLLOW.
FOR AND ON BEHALF OF:
BANK: ….…………………………………….
-------------------------------- -------------------------------
AUTHORISED BANKER {1} AUTHORISED BANKER {2}
NAME, TITLE & PIN CODE NAME, TITLE & PIN CODE
----------------------------------------------------------------------------------------
