bg/sblc for lease (smith larry | 5/24/2020 10:56:30 PM )

Dear Sir, Thanks for your email. Below is our procedure.

TRANSACTION DESCRIPTION:

1. Instrument: Standby Letter of Credit (SBLC)

2. Total Face Value: Buyers Request

3. Issuing Bank: HSBC Bank

4. Age: One Year One Day

5. Leasing Fee: 4+2

6. Delivery: Bank to Bank Swift MT799 and/or MT760

7. Payment: MT103

8. Hard Copy: By Bank Bonded Courier within 7 banking days after delivery of Swift.



TRANSACTION PROCEDURE:

1. Seller and Buyer execute, sign and initial this Deed of Agreement, which thereby automatically becomes a full commercial recourse contract to be lodged by both parties for initiation of Swift Transmission.


2. Within three (3) banking days after both parties sign the Agreement, Seller will issue a Notarised signed and sealed Corporate Refund Recourse Undertaking duly endorsed by the Sellers legal Department to the Buyer guarantying to refund to all cost incurred by buyer as the transmission/administrative charges for the transmission of Pre-Advice via Swift MT799 or BG/SBLC via Swift MT760 or both after due execution of the contract and in case of failure on the Lessor’s side the Notarised signed and sealed Corporate Refund Recourse Undertaking guarantees that the buyer refunds completely the transmission/administrative fees in addition to a the penalty for failure of performance being 1% of the total face value of BG/SBLC.



3. Within three (3) working days after the buyer receives contract documents including the invoice and refund undertaking from the Lessor, the buyer will make payment by direct wire transfer into the seller’s provided bank coordinates for the receiving of the bank transmission/administrative charges the bank transmission/administrative fees for the Pre-Advice via Swift MT799 or BG/SBLC via Swift MT760 or both as the case maybe in the amount of Euro/USD X,XXX.XX.



4. Within two (2) banking days after confirmation of receipt of payment of the bank transmission/administrative fees charges for the BG/SBLC via Swift MT760 or Pre-Advice via Swift MT799 or both in Seller’s bank account, the Seller will deliver the Pre-Advice or BG/SBLC via Bank to Bank confirmation of Swift MT799 or MT760 to the Lessee’s banker including the hard copy of the BG/SBLC via bank bonded courier in Seven (7) banking days.



5. The sellers bank proceed with total swift and upon delivery, confirmation and verification of BG/SBLC by MT760 in the Buyers’s nominated account and BG/SBLC hard copy in the Buyer’s nominated bank.



Buyers then sends out the Leasing fees 4% by Swift MT103 to the seller account deducting the initially paid bank transmission/administrative fees and pay the brokers their commission fee of 1 % of total Face Value by wire transfer within thirty (30) days maximum upon delivery, confirmation and verification of BG/SBLC by MT760 in the buyer’s nominated account and BG/SBLC hard copy in the Buyer’s nominated bank.



6. Should the Buyer not deduct the bank transmission/administrative charges from Leasing fees paid, the seller shall refund bank charges to buyer by direct wire transfer within three (3) banking days upon payment of the buying fees.

Should the buyer default to pay the Leasing fees to the Seller and the brokers commission fees as agreed after 30 banking days of confirmation of BG/SBLC MT760 in buyer’s bank account, Seller will instruct the issuing bank to put a claim on the BG/SBLC thereby forcing the Buyers’s bankers to return the BG/SBLC MT760 to the issuing Bank.

Looking forward to accepting our terms and procedure then we can establish a long term business relationship.

Regards,

Leif Olsen.