Methods of Payment/Financial Instruments BG

BG ( irrevocable, operative and transferable assigned and confirmed Bank Guarantee (ICC458))

A. Buyer sends an “Irrevocable Corporate Purchase Order (ICPO) with full banking information to Seller’s Mandate.
B. Seller in reply sends per E-mail FCO (Full Corporate Offer) to Buyer.
C. Buyer accept this Seller’s FCO with signature, seal and send it back to Seller’s mandate.
D. Seller sends per E-mail a draft contract to Buyer.

Next actions as follows:

1. Buyer/ Seller signs this draft contract per E-mail and Buyer sends 6 pre-signed contracts to the Seller and each party.

2. Buyer/Seller should both lodge the executed contract in their respective banks.

3. After signing of the electronic contract, Buyer has to send swift message (MT760-BCL) to Seller’s bank, with readiness of Buyer to provide MT760 (POF) to Seller in an amount equal to last-month’s shipment of PRODUCT and readiness to provide an irrevocable, auto-revolving, SBLC Letter of Credit payable 100% at sight against shipping documents to pay for each monthly shipment for the term of the agreement.

4. Seller arranges a table top meeting (TTM) to show the original POP documents to the buyer. After The Buyer issues a non-operative SBLC to the sellers bank, value of 0.000.000 MT of xxx PRODUCT at the contract price.

5. Buyer’s bank issues the IRREVOCABLE, OPERATIVE AND TRANSFERABLE ASSIGNED AND CONFIRMED BANK GUARANTEE BG (ICC458) ISSUED BY A PRIME BANK, good for one year and one day, payable for last-month’s shipment, which activates the Performance Bond and causes Seller to provide complete POP documents to buyer’s bank.

6. Contract comes into force.

7. The Seller shall issue the first cargo delivery confirmation and date.

8. Shipment will start according to conditions of the contract and according to agreed schedule. Payment for each (monthly) shipment shall be T.T. payment by SWIFT Wire MT103/23 (or RDLC) payable 100% at sight against shipping documents.

9. Each party hereto will bear its respective banking costs / charges.

10. The Verbiage of Bank Instrument (BG), and Performance Bond will be mutually agreed by both parties panel Bank, any reasonable variations being acceptable.