To - Essar Group



FORMAT - IRREVOCABLE STANDBY LETTER OF CREDIT FOR ADVANCE PAYMENT

Date:

To:

[Insert ADVISING BANK NAME AND ADDRESS with contact person details]

Sub: Irrevocable Standby Letter of Credit No………… amounting to [insert SBLC value in figures] ………….. in respect of Purchase Order No. …………….. dated ……………. (“PO”) towards advance payment for…… [Insert Project Name of Essar]

We, [Insert the name Issuing Bank name and address ]…………………., hereby issue our irrevocable Standby-Letter of Credit No. ……………….., ("Standby L/C"), as follows:

SBLC Amount: :………………..(Insert SBLC amount in figure and words)

Date of expiry and place: :………………, Mumbai, India

Beneficiary: Essar Projects (India) Limited, Equinox Business Park (Peninsula Techno Park), off Bandra Kurla Complex, LBS Marg, Kurla West, Mumbai - 400070 , Maharashtra , India,

Kind attn: Ms. Juliana D’Souza,Email: Juliana.Dsouza@ .

Applicant:

[Name and address of the Seller with contact person details]

Concerning: The due fulfillment of the Applicant's obligations to repay an advance payment of ………………… (“Advance Payment”), representing ………… % of ………………[ insert the total value or basic value of the PO] to be made by the Beneficiary to the Applicant in connection with supply of ……………. [ insert short description of material as per PO] in terms of the said PO.

This Standby L/C is available with …………………….[Insert Advising Bank’s name & address] by sight payment in one or more drawings, against presentation of the following document(s):

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Beneficiary's manually signed and appropriately completed declaration, stating that:

"We, Essar Projects (India) Limited, Equinox Business Park (Peninsula Techno Park), off Bandra Kurla Complex, LBS Marg, Kurla West, Mumbai - 400070 , Maharashtra , India, under the Irrevocable Standby Letter of Credit no. …………… with respect to the said Purchase Order no. ……………….dated............. for ……………[Insert total PO value/basic value.] (“PO”) hereby demand payment of [Insert SBLC amount in figures] ……………………from ……………[Insert Name and address of Issuing Bank in Mumbai, India], under the aforementioned Standby Letter of Credit, which represents a sum due to us from ………………. [Insert Applicant’s name] (“Applicant”), as the Applicant has failed to fulfill his contractual obligations under the PO."

This Standby L/C will be made operative upon receipt of the Advance Payment in the account of ……………. [Insert the details of Applicant's account].

Documents presented under this Standby L/C have to be issued in English Language.

Instructions to the Advising Bank:

Please advise this Standby L/C to the Beneficiary addressed to Ms. Juliana D’Souza, Manager, Essar Projects (India) Limited, Equinox Business Park (Peninsula Techno Park), off Bandra Kurla Complex, LBS Marg, Kurla West, Mumbai - 400070 , Maharashtra , India , Mob. 91 9819731628 Email: Juliana.Dsouza@ .

All banking charges in India are for the account of the Beneficiary.

Reimbursement Instructions:

Four (4) bank working days after your SWIFT advice confirming that you have received a complying presentation and sent relative document(s) to us by courier service.

Documents are to be sent to:

…………………………………….................. [Insert name, address and RTGS details of Advising Bank]

This Standby-L/C is subject to the Uniform Customs and Practice for Documentary Credits (2007) Revision International Chamber of Commerce (ICC) Publication No. 600.

This is an operative instrument and no mail confirmation will follow.

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