EXPORT
CREDIT INSURANCE CONTRACT
AGAINST COMMERCIAL AND NON COMMERCIAL RISKS
(BASIC POLICY)
On
this day of ___________ the (date) __________ of (month)
_____199 , in Cairo.
Between:
First, the Export Credit Guarantee Company of Egypt,
an Egyptian joint stock company established according
to Law no. 21 for 1992 and located in Cairo (hereinafter
referred to as "The Company")
First
Party
Second,_______________________________________________________
______________________________________________________________
______________________________________________________________
(hereinafter referred to as "The Company")
Second
Party
Preamble
Where as,
- The exporter has presented an application for the
guarantee of all export
operations that be intends to conducts in external
markets during the year (annex 1)
- As the goods subject to the export operations are
of Egyptian origin, which the supplier promises to
prove by presenting the relevant certificates as part
of the documents of each shipment conducted under
this contract, hence providing the terms of eligibility
for coverage as defined by Law no. 21 of the year
1992 concerning the creation of the Export Credit
Guarantee Company of Egypt.
- As the company has agreed to guarantee the operations
defined in annex 2, all of which are short term operations
and thus eligible for coverage
by this policy.
Therefore, according to the above, the two parties
have concluded this contract in accordance with the
principles and conditions stated
hereinafter.
Basic
Principles of the contract
Article 1
a- This contract, including the previously mentioned
preamble and its
attached annexes represents an indivisible entity
regarding its
obligations power and legal effects.
b- The duration of the contract is of one year, stating
on / / 199 and
shall be automatically renewed for similar periods
unless either party
notifies the other on non - renewal at least one month
prior to the end of
the effective period.
c- The guarantee covers the amounts due on shipments
conducted during
the duration of the contract even if the due date
of payment comes after its expiry. The guarantee does
not cover any amounts due on shipments conducted before
the entry into force of the contract.
d- Payment intervals on export operations covered
by the guarantee shall
not exceed one hundred and eighty days, but may be
extended, with the
company's approval, to one year.
e- The two parties shall meet their financial obligations
as defined in this contract in the currency agreed
upon as shown in Annex (2).
Definitions
Article (2)
In implementation of this contract, the following
terms are defined as follows:-
1- The exporter: means the party concluding
the Exporter operations covered by this contract who
has presented in his name an application for their
insurance and has concluded the insurance contract
accordingly.
2- The Buyer: means the importing party connected
to the exporter as
per the export contract.
3- The Company: means the Export Credit Guarantee
Company of
Egypt.
4- The Buyer's State: means the state to which
the goods subject to the
Export contract covered by the insurance are exported
or the state in which the buyer is incorporated.
5- Public authority in any state: means one
of the governmental ministries
or municipal units or any other juristic public authorities,
or the establishments or companies considered by the
company to be public authorities for the purpose of
implementing the terms of this contract.
6- The payment currency: means the currency
agreed upon for payment as
shown in Annex (2).
7- The buyer's currency: means the currency
of the buyer's state.
8- Exchange rate of the buyer's currency: means
for any day, the rate
confirmed by the Central Bank in the buyer's state
that applies to payments related to external trade.
If that exchange rate varies or changes several times
on the same day, then the average exchange rate applied
at the main banks of the buyer's state shall be taken.
Should that exchange rate be impossible to determine
on that day, then the exchange rate of the nearest
previous day on which the above regulations could
apply, shall be taken.
9- This contract: means this insurance contract
together with its attached
annexes that are considered as an undivided part of
it, and any subsequent modification made on its provisions
Risks
Covered by the Guarantee
Article (3)
According to this contract, the guarantee will
cover unpaid dues of the exporter resulting from any
export operation covered by it, provided that this
non-payment is directly related to one of the risks
occuring after shipment of the goods, of those imitatively
defined below, and within the limits, terms and conditions
specified in this contract.
Commercial risks
1. Bankruptcy of the buyer : means for
the purpose of this contract , the
declaration of bankruptcy by a court's ruling or the
drawing of a reconciliation preventing bankruptcy
or any judicial procedure resulting in the debtor
losing control over the management of his finances
.The same applies in case of forced liquidation ,
in case the debtor is a juristic person unless the
liquidation is meant solely for the purpose of
reorganization or merging into another juristic person
without affecting the creditors' rights.
2. Failure or inability of the buyer to pay the exporter
his dues in the spite of the latter having fulfilled
all his obligations towards the buyer .
3. Refusal or abstention of the buyer to receive the
shipping documents of the shipped goods in spite of
the exporter's fulfillment of all his obligations
towards the buyer .
