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mail loans cc clearance letter

A back-to-back Letter of Credit is issued using an existing export L/C opened in customer‟s favour with consistent terms and conditions as security and the source of repayment. Similar to Transferable Letters of Credit the buyer will not normally know the ultimate supplier and the Standard Chartered Bank’s customer can therefore supply the buyer without divulging data relating to third parties.

  • An approved credit facility for the issuance of such Letters of Credit Application for the opening of the Letter of Credit or amendment to the Letter of Credit should be made on the standard form provided by Standard Chartered Bank and duly signed by authorized signatories of the customer‟s company consistent with the records held with Standard Chartered Bank.
  • The authorized signatories of the company should sign any annexure for special or additional conditions to be incorporated in the text of the Letter of Credit. Such conditions should be concisely stated and where applicable, must mention the supporting document to be presented under the Letter of Credit
  • The Letter of Credit application should be accompanied by a sales contract or a confirmed purchase order or a proforma invoice from the supplier. The details stated in the L/C application should be as per the contract / proforma invoice, specifically with respect to tenor, value, commodity and Inco terms
  • The application should be properly completed and all terms and conditions must be clear, precise, workable, technically correct and subject to the current version of UCP. The importation of goods should not be subject to any boycott, blacklisting or contravene any regulations or Standard Chartered Bank’s Standard Chartered Bank internal policies or International sanctions issued by any other government agency, which is binding on Standard Chartered Bank.
  • Evidence of insurance should be presented in case of FOB or CFR contracts indicating Standard Chartered Bank as co-insured, loss payee or with Standard Chartered Bank’s interest noted on the policy.
  • Any violation of local and Group Anti Money Laundering principles could result in the bank‟s refusal to act on customer instruction or to address appropriate escalation as required by law.
Back-to-Back Letter of Credit Back-to-Back Letter of Credit

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