In consideration of the opening by you of this Credit on my/our behalf, I/We hereby undertake and agree that I/We will provide you with the funds necessary to meet the payment there-of or at your option their counter-value in local currency at your then current selling rate of exchange for the foreign currency concerned as well as the full amount necessary to reimburse you for all sums disbursed by you and/or by your accepting branch together with interest where applicable and your commission as arranged.
It is understood that the Letter of Credit will not be established until you provide us with the requisite foreign currency except otherwise agreed and I/We hereby authorize you to debit my/our account with any amount due as a result of exchange variation at the date of transfer in Dollar/foreign exchange currency. If no account is maintained in my/our name in your books I/We undertake to reimburse you for any claim of the above nature made.
In the event of the insurance not being arranged to your satisfaction you are authorized in your absolute discretion, but without your being under any obligation in the matter, to effect such insurance at my/our expense
You and your agents are not to be held responsible for the genuineness or correctness of the Bills of Lading or other documents or any endorsement thereon or for any mistake or misrepresentation as to the quality, quantity, weight, marks, or value of any merchandise comprised therein, or for the shippers’ or other charges on any such merchandise, nor as to the terms, conditions or sufficiency of the Insurance Policies or Certificates.
It is Understood and agreed that all risks, including exchange risks, arising out of or consequent on the issue of this credit are to be borne by me/us alone and that the Bank and/or its agents are not to be held responsible for any errors or delays on the part of post or telegraph or cable companies or authorities in the transmission of any instructions or correspondence regarding the credit
I/We agree that my/our liability to you in respect of each draft drawn under this credit shall not be discharged until funds being remitted from our Bank to meet payment by you or your correspondent and such currency has been transferred to the appropriate or designated foreign account.
In this connection I/We acknowledge and agree that my/our responsibility for exchange risks as hereinafter mentioned shall extend to all exchange risks arising up to and including the transfer of such currency to the appropriate foreign center and I/We undertake to reimburse you on demand for any amounts becoming due to you under this provision, notwithstanding that counter value in Local currency may already have been deposited at the designated Collection account with the LAA for the full amount of such drawing calculated at your selling rate prevailing on the day the deposit was made.
I/We hereby authorize you to hold the documents called for by the terms of the credit and the merchandise to which they relate and the relative insurances as security for all liabilities incurred by you or your correspondents or agents in connection with this credit including expenses and charges of whatever nature incurred in relation to the said merchandise or the obtaining of possession or the disposal thereof (which expenses and charges I/We hereby authorize you to incur and undertake to repay to you) and you may sell the said merchandise either before or after arrival at your discretion and without notice to me/us. I/We further agree to give you any additional security that you may from time to time require to cover my/our liabilities to you hereunder and in the event of your selling the merchandise to pay on demand the amount of any deficiency.
Should you elect before provision by me/us as aforesaid for drafts accepted under this credit to hand me/us the relative shipping documents for the purpose of clearing and realizing the shipment or shipments or for any other purpose. I/We engage in the meantime to hold such documents or the relative merchandise or the proceeds thereof on your behalf
I/We hereby authorize you to debit my/our account with all sums which may become due to you in respect of this credit including your commission percent, interest of where applicable and all charges and expenses incurred by you, your office and/or your correspondents.
My/our liabilities to you are to continue in force and to be applicable to all transactions entered into hereunder, notwithstanding any change in the composition of the firm or firms, parties hereto, or in the beneficiary(ies) hereunder
When this document is signed by two or more parties, we hereby declare that our liability is Joint and several.
Authorized Signatories