Actions of the
Parties
1.Beneficiary
The Beneficiary fills out the points above (Instrument Description)
and signs this procedure and sample of BPU if he agrees with
it and provides:
1. Draft ordered Instrument;
2. A copy of Passport of the Authorized Signatory;
3. A copy of the Company's Certificate;
4. BCL letter (About readiness to accept a Bank Instrument as
collateral for a line of Credit) and PROOF OF FUND Letter or
Account Statement in the amount of N% of the nominal value of
the ordered Instrument.
1.1. After conducting initial due diligence within (3) three
business days the Provider provides to the Beneficiary the contract
for approval and signing.
2.Both Parties
Within (2) two business days of this Agreement being signed
by Beneficiary, Provider shall fill it in initial, sign and
close in pdf, making it binding to both parties. Both Parties
shall then lodge this Agreement with their designated banks.
3.Both Parties
Upon Submission of the Document to the banks, the banks will
inspect and approves and accepts it as being signed within the
precincts of the Provider, in tandem with ICC regulations and
due process. The banks may notify both parties any other necessary
conditions if and as when applicable.
4.Beneficiary
After signing the contract by both parties, the beneficiary’s
bank will send to the bank of Provider by Swift MT-799 the BANK
PAYMENT UNDERTAKING (BPU) (see verbiage in Annex) about payment
of N% of the nominal value within 3 banking days after receipt,
verification and authentication of the MT760. A copy of the
undertaking payment SWIFT MT799 shall be sent to the provider’s
bank via secured e-mail.
5. Provider
Within five banking days upon satisfactory confirmation and
authentication of the guarantee of Payment SWIFT MT799 by the
provider’s Bank, Issuing bank shall send the BG/SBLC Swift
MT760 to the Beneficiary’s bank. A copy of the SWIFT MT760
shall be forwarded to the Beneficiary’s bank via secured
e-mail.
6. Beneficiary
Within Two (2) Banking Day of receipt of the SWIFT MT760 from
Provider, Beneficiary’s bank shall authenticate and validate
the SWIFT MT760 on Bank to Bank basis. Within Three (3) Banking
Days of authentication of the BG/SBLC, Beneficiary’s bank
settles the agreed price of the instrument (N%+1%+1% of the
nominal value) via SWIFT MT103, according to the contract. Beneficiary
forwards copies of the SWIFT MT103 to the Provider via e-mail
immediately after transmission of Settlement/Payment.
7. Provider
Within seven (7) banking days of receipt of the payment, the
Provider causes the Delivery of the Original Hard Copy via bank
Bonded courier to the designated bank account of the Beneficiary.
8. Both Parties
Subsequent tranches shall be as per Tranche Schedule specified
in this Agreement or as may be agreed upon between the Provider
and the Beneficiary. Subsequent tranches shall be as per the
procedures above.
9. Both Parties
Any rolls and extensions have to be agreed upon between the
Provider and the Beneficiary by one (1) week before the initial
contract amount is exhausted.
