TERMS AND CONDITIONS:
1. We â€˜The Applicantâ€™ hereby authorise CIB Finance to debit our account for Documentary Credit establishing charges, Documentary Credit Down Payment (Margin) amount as agreed if any, and the courier and swift expenses of CIB Finance's correspondents and any other expenses that may occur as a result of establishing this credit, now or thereafter.
2. The Applicant undertakes to receive the documents relating to this Documentary Credit without delay on receipt of the first advice against the payment of all drawings under this credit in local currency calculated at CIB Finance's rate of exchange ruling on the date reimbursement is made by the Applicant to CIB's correspondents abroad, plus CIB Finance's charges and commissions, if any.
3. In case of failure in settlement, the Applicant hereby irrevocably authorises CIB Finance to debit the Applicant's margin account with full value / the remaining value of documents if the balance in the account is sufficient to cover the same. If there are insufficient funds in the account, the Applicant authorises CIB Finance to take possession of the goods or clear through the customs and sell them in order to obtain the full settlement.
4. In case the value of the sold goods is less than the Applicant's indebtedness CIB Finance has all rights to proceed against the Applicant by all means, and the Applicant agrees in advance that CIB Finance has the right to recover all funds, merchandise, shares and / or anything of value that might be or will be deposited at CIB Finance's end for the Applicant's account by way of security for the said debts and apply them instantly towards the reimbursement of all CIB Finance's payments and expenses as aforesaid.
5. The Applicant releases CIB Finance from any responsibility whatsoever regarding the correctness, genuineness, regularity or accuracy of documents as well as their going astray. The Applicant further undertakes to be liable for all compensations and legal effects which may occur as a result of errors, omissions, belatedness of documents and or loss of cables and letters relating to this credit.
6. CIB Finance is not to be responsible in any way for nature, quantity and value of goods shipped under this credit nor if they are not complying with specifications agreed upon or information stated in invoices, Bills of lading and other documents.
7. The Applicant releases CIB Finance, also from any responsibility in case of the insurance companyâ€™s bankruptcy or nonpayment of insurance amount for any reason whatsoever.
8. It is mutually agreed upon that when the insurance amount becomes due for any reason CIB Finance has the right to encash its proceeds directly from the insurance company as a guarantee to all the Applicant's obligations which have been incurred by means of this contract towards CIB Finance or any other parties.
9. In the event an insurance policy/certificate is not required among the above documents, the Applicant undertakes to deliver the same to CIB Finance in an original negotiable form within one week from the date of this Documentary Credit against all possible risks and the Applicant irrevocably frees CIB Finance from any obligations to refer to the Applicant or remind the Applicant to affect such insurance. It is further understood that if such policy or certificate is not delivered to CIB Finance within one week from the date of this Documentary Credit, or if CIB Finance concludes at any moment that the insurance effected and agreed upon by exporter is not for any reason whatsoever, to CIB Finance's full satisfaction, CIB Finance may without referring to the Applicant insure the goods again for the Applicant's account, (but without obligation on CIB Finance's part) against the risks CIB Finance deem necessary and with the company the Applicant prefers. The Applicant hereby irrevocably undertakes to refund all CIB Finance expenses incurred as a result.
10. The Applicant also understands and agrees that this credit, except so far as otherwise expressly stated is to be opened in accordance with the Uniform Customs and Practice for Documentary Credits (2007 revision) International Chamber of Commerce Brochure No.600 ("UCP600") or the latest version which the Applicant has read and understood.
11. The Applicant certifies that the import of the goods described above is not prohibited or restricted and that the Applicant holds and undertakes to exhibit to CIB Finance a valid import licence where such licence is required.
12. The Applicant is aware of the implications of article 15 of UCP600 and acknowledges that where a bank claims to have negotiated under this documentary credit, its good faith and the fact of negotiation thereof shall be presumed in the absence of evidence to the contrary.
13. To hold CIB Finance and CIB Finance's agents harmless and free from any responsibility whatsoever for any delay, mistake or omission that may occur in the transmission of instructions with respect to the opening of the Documentary Credit, or any amendments or cancellation thereof (by mail, swift or other telecommunication), and from the loss of or delay in the forwarding of documents, and for the validity, regularity or genuineness of any document, or any signature thereon, provided the document or signature appears regular, and for the description, quality, quantity or value of the goods or property represented by such documents.
14. That the Documentary Credit is subject to usages and customs prevailing in the place where it is established.
15. The Applicant shall continue to be bound by all of the Applicant's undertakings herein notwithstanding any amendment, extension, renewal, revision or modification of any kind in the term of the Documentary Credit and, where this Application is signed on the Applicant's behalf by two or more parties (whether partners or not), and be it in the name of a firm or in any other capacity, all parties so signing shall be jointly and severally liable hereunder.