Article
(3) : Covered letters Credits
This contract shall cover any letter/ lettersof
credit notified or assigned to the bank , and which
the company approves to cover according the following
conditions :
1- To be irrevocable and unconfirmed in Egypt.
2- It shall be stated in the letter/ letters of credit
conditions that its are subject to the uniform customers
and fractions issued on May 10,1993 and published
in the bulletin no. 500 of the international Chamber
of Commerce in Paris also letter/ letters of credit
should explisily stated the acceptance the settlement
of dispute relating to the Documentary Credit . the
arbitration of this Chamber in any
3- The Subject - Matter of the letter/letters of credit
shall be the export of the goods of Egyptian origin
which have been actually shipped from Egypt .
4- The Bank would apply to the company with the request
to cover the credit while satisfying the data in accordance
with the text determined by the company.
Article
(4) : Validity of the Contract :
This contract shall be valid for one year as from
... / ... / 19.... and shall automatically be renewed
for similar periods unless one party notifies the
other of its desire not renew it at least on month
prior to the end of its validity period.
Article
(5) : Scope of the Contract :
A. This guarantee shall cover the amounts paid
by the bank to the beneficiary on the basis of documentary
credit the company approves to cover during the validity
period of the contract , even if their due date or
payment by the bank issuing the credit falls after
the expiry of this period .
B. The two parties shall meet their obligation as
defined in this contract in the currency agreed upon
in the guaranteed credit .
Article
(6) : Transfer of the Guaranteed Credit :
The bank may not assign nor transfer - totally
or partially - the guaranteed credit in order to be
utilized by any other bank except after obtaining
the prior written approval from the company to the
foregoing.
Article
(7) : Risks Covered by the Guarantee :
The guarantee - according to this contract - shall
cover the non fulfillment of the bank issuing the
credit to any amounts paid by the bank on basis of
the guaranteed credit , if this was attributed to
one of the following risks :
A . Commercial Risks :
1 . Bankruptcy of the bank issuing the credit .
2 . Refusal , abstention or failure of the bank issuing
the credit to fulfill its obligations in spite of
the second party bank fulfilling all its obligations
as defined by the guaranteed credit
B . Non - commercial Risks :
3 . Cancellation of the import license by the authorities
of the buyer's state (Importer ) or its suspension
, non-renewal , or the refusal of such authorities
to allow the entry of the goods , subject - matter
of the credit .
4 . Seizure , detainment or confiscation of the authorities
of the buyer's state or the goods , subject - matter
of the credit .
5 . Prevention of the authorities of the buyer's state
or the state through which payment shall be made of
the bank from fulfilling its rights from the bank
issuing the credit , whether this was carried out
on basis of a law , decree , regulation or a decision
.
6 . Insolvency of the bank issuing the credit or its
non-payment of the debt , if it was considered , according
to the legislation of the state to which it is affiliated
, among the public sector banks .
7 . Taking measures by the public authorities of the
state where in the bank issuing the credit is located
, whether based on a law , decree , regulation or
a decision , that would restrict the conversion of
the bank dues to the payment currency of the guaranteed
credit . These measures include refusing or delaying
the approval or conversion , the imposition of a preferential
exchange rate , or the imposition of conversion by
a currency other than the currency specified in the
documentary credit , if this should result in a loss
that exceeds 1% of the value as calculate on the basis
of exchange rate of the currency of the bank issuing
the credit on the date of conversion .
8 . Any military action of whatever origin that directly
affects the material assets of the bank issuing the
credit , as well as general civil disturbances such
as revolutions , coups d'etats , the same effects
, if they would directly lead to default of the bank
issuing the credit or its delay in paying the amounts
due to the second party Bank .
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