PROCEDURES FOR ISSUING THE SBLC 42+2. Issuer Bank DB

PROCEDURES
1. BENEFICIARY SUBMITTED THE APPLICATION TOGETHER WITH COMPLIANCE DOCUMENTS:

1.1. CLIENT INFORMATION SHEET
1.2. STATEMENT OF NON-SOLICITATION OF FUNDS
1.3. IRREVOCABLE FEE PROTECTION AGREEMENT COVERING ALL IDENTIFIED BENEFICIARIES FOR BOTH
SIDES
1.4. CLEAR COLOR COPY OF THE BENEFICIARY SIGNATORY’S PASSPORT
1.5. CERTIFICATE OF INCORPORATION
1.6. INITIALED AGREEMENT (DOA)
2. AFTER SUCCESSFUL DUE DILIGENCE OF THE BENEFICIARY’S APPLICATION, THE PRINCIPAL SENDS A FULLY
COMPLETED AGREEMENT (DOA) FOR FINAL PROCESSING. THE BENEFICIARY SIGNS, STAMPS AND SENDS IT
TO THE PRINCIPAL WITH BENEFICIARY’S BANK CONFIRMATION LETTER. THE PRINCIPAL SIGNS THE
AGREEMENT, STAMPS AND WITH THE ASSIGNMENT OF CODES SENDS THE FULLY COMPLETED DOA IN PDF
FORMAT. THE BENEFICIARY SUBMITS THE AGREEMENT TO HIS BANK.
3. WITHIN THREE (3) BANKING DAYS AFTER SIGNING OF THE DOA THE BENEFICIARY'S BANK HAS TO SEND
TO THE PRINCIPAL'S BANK INFORMATIONAL SWIFT MT199 ON READINESS TO ACCEPT SBLC AND TO
ISSUE BPU.
4. WITHIN THREE (3) BANKING DAYS AFTER RECEIPT OF RWA VIA SWIFT MT199 FROM BENEFICIARY’S BANK
THE PRINCIPAL’S BANK WILL ISSUE A PRE-ADVICE VIA SWIFT MT799 CONFIRMING THE INSTRUMENT WILL
BE ISSUED AGAINST THE RELEASE OF THE PAY ORDER BPU BY THE BENEFICIARY BANK THROUGH SWIFT
MT799.
5. THE PRINCIPAL WILL ISSUE CORPORATE INVOICE, AND WITHIN THREE (3) BANKING DAYS OF THE
BENEFICIARY HAS RECEIVED CORPORATE INVOICE PROVIDING THE BENEFICIARY’S BANK HAS TO SEND TO
THE PROVIDER’S BANK BPU FORTY FOUR PERCENT (44%) VIA SWIFT MT799 PROVIDING THE COPY SWIFT
MT799 BPU VIA BANK SECURE E-MAIL.
6. WITHIN FIVE (5) BANKING DAYS AFTER THE PROVIDER’S BANK HAS RECEIVED AND AUTHENTICATED THE
BPU SWIFT MT799, THE PRINCIPAL’S BANK DELIVERS THE SBLC VIA SWIFT MT760 PROVIDING THE COPY VIA
E-MAIL.
7. WITHIN 72 HOURS AFTER RECEIPT OF EACH SWIFT MT760, ISSUED BY THE PRINCIPAL'S BANK, THE
BENEFICIARY MUST PROVIDE CONFIRMATION LETTER ON THE COMPANY LETTERHEAD ABOUT GETTING
BY THE BENEFICIARY’S BANK THE SBLC VIA SWIFT MT760. IF WITHIN 72 HOURS BENEFICIARY ARGUES
THAT HIS BANK HAS NOT RECEIVED THE SWIFT MT760, IT MUST PROVIDE THE LETTER CERTIFIED BY THE
OFFICER OF THE BENEFICIARY’S BANK WITH THE BANK'S STAMP AND WITH TELEPHONE NUMBERS AND
E-MAIL OF THE BANK OFFICER FOR THE FURTHER INVESTIGATION.
8. IF THE LETTER CERTIFIED BY THE OFFICER OF THE BANK STATING THE ABSENCE OF THE FINANCIAL
INSTRUMENT IS NOT PROVIDED IN THE LIMITED TIME ACCORDINGLY TO PARAGRAPH 7., SWIFT MT760
SBLC SHALL BE CONSIDERED RECEIVED BY THE BENEFICIARY AND ALL OBLIGATION REGARDING THE
ISSUANCE OF SWIFT WILL BE CONSIDERED AS EXECUTED BY THE PRINCIPAL.
9. WITHIN FIVE (5) BANKING DAYS AFTER THE INSTRUMENT IS RECEIVED BY SWIFT MT760 AND
AUTHENTICATED THE BENEFICIARY’S BANK WILL ACTIVATE THE BPU AND PAY BY SWIFT MT103 SAME
DAY VALUE.
10. SBLC ON PAPER (HARD COPY) WILL BE BROUGHT TO BANK OF THE BENEFICIARY BY THE SPECIAL BANK
COURIER DURING 7 (SEVEN) BANK DAYS AFTER RECEIVED FULL PAYMENT IN AMOUNT OF FORTY TWO
PERCENT (42%) OF FACE VALUE OF SBLC TO THE NOMINATED ACCOUNT OF THE PROVIDER AND TWO
PERCENT (2%) OF FACE VALUE OF SBLC TO THE CONSULTANTS.
11. THE BENEFICIARY PAYS FORTY FOUR PERCENT (44%) OF FACE VALUE OF FACE VALUE OF SBLC, AS PER THE
RELEVANT IRREVOCABLE FEE PROTECTION AGREEMENT (ANNEX 5).
12. BOTH PARTIES SHALL PROVIDE THE TRANSMISSION COPIES OF ALL SWIFT TO EACH PARTY FOR TRACKING
THROW THE CONSULTANT.
PROCEDURE FOR PROLONGATION OF BANK GUARANTEE
1. WITHIN 30 DAYS BEFORE THE EXPIRATION DATE OF THE SBLC, THE BENEFICIARY SUBMITS THE FORMAL
APPLICATION TO THE PRINCIPAL BY REFERRING TO THIS AGREEMENT TO PROLONG THE TERM OF THE
SBLC FOR THE PERIOD OF THE FOLLOWING CONSECUTIVE 12 MONTHS.
2. THE REQUIREMENT TO PROLONG THE VALIDITY OF THE SBLC MAY BE SUPPORTED BY OTHER
DOCUMENTS THAT ARE PROVIDED FOR IN THE GUARANTEE, BUT IN ANY CASE - BY THE BENEFICIARY'S
APPLICATION, WHICH SPECIFIES THE TERM FOR THE EXTENSION REQUEST, THE REASONS FOR THE
EXTENSION AND THE OBLIGATIONS OF THE BENEFICIARY WHEN THE CONDITIONS FOR EXTENDING THE
VALIDITY PERIOD OF THE SBLC ARE FULFILLED. THIS APPLICATION MUST BE PROVIDED BOTH IN PAPER
FORM AND ELECTRONICALLY, IF THIS IS PROVIDED FOR IN THE AGREEMENT BETWEEN THE PARTIES.
UPON RECEIPTOF THIS APPLICATION, THE PRINCIPAL TAKES LEGAL RESPONSIBILITY TO INSTRUCT AND
SUPERVISE HIS BANK ACCORDING TO THE RULES OF ICC PUBLICATION №600, TO FULFILL THIS
OBLIGATION WITHIN THE GIVEN TIME-FRAME (EXPIRY/MATURITY) OF THE EXISTING INSTRUMENT.
3. UPON RECEIPT OF THIS INSTRUCTION, ISSUING BANK RELEASES SWIFT IN FAVOR OF THE BENEFICIARY’S
RECEIVING BANK TO CHANGE THE END-TERMS OF THE SBLC.
4. AFTER RECEIVING SWIFT, THE RECEIVING BANK CONFIRMS THE ISSUING BANK THROUGH THE SWIFT
MESSAGE OF ACCEPTANCE OF THE CHANGES IN TIME-FRAME (EXPIRY/MATURITY) OF THE EXISTING
INSTRUMENT.

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PROCEDURES FOR ISSUING THE SBLC 42+2. Issuer Bank DB

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PROCEDURES

1. BENEFICIARY SUBMITTED THE APPLICATION TOGETHER WITH COMPLIANCE DOCUMENTS:

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