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PROPOSAL FOR A BOND INSURANCE POLICY

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PROPOSAL FOR A BOND INSURANCE POLICY Powered By Docstoc
					PO Box 2200 2 Exchange Tower Harbour Exchange Square London E14 9GS




PROPOSAL FOR A BOND INSURANCE POLICY
                                                  (Form BIP6)



                                       IMPORTANT INFORMATION


Corruption and Money Laundering

Please note that the OECD countries, including the United Kingdom, are committed to
combating corruption and money laundering. The law in the UK has been strengthened in
order to do so. Whilst you are responsible for ensuring that your activities comply with all
laws that are relevant to the transaction in respect of which you are applying for our
support, we draw your attention in particular to the amendments to the applicable law on
corruption contained in Part 12 of the Anti-terrorism, Crime and Security Act 2001 and to
the applicable law on money laundering contained in Part 7 of the Proceeds of Crime Act
2002. Certain acts committed abroad now constitute criminal offences in the UK. You
should also be aware that ECGD routinely refers allegations of bribery and corruption and
money laundering to the appropriate authorities.


This Proposal

The questions in this Proposal must be answered to the full extent of your capability at the
time at which you submit this Proposal. If a full answer to any question would require
details which are not within your knowledge, please expressly draw that fact to ECGD’s
attention in your response to that question.

 If the space provided is insufficient, please continue your answers on your headed
notepaper and attach it to this form.

You must disclose all material facts; failure to do so may nullify any Bond Insurance Policy
based upon this Proposal Form. Your duty to disclose material facts continues after the
date of signature of this Proposal Form until the date cover under the Bond Insurance
Policy commences. A material fact is one likely to influence acceptance or assessment of
this Proposal. If you are in doubt as to what is a material fact you should consult ECGD or
your broker.
THE PROPOSER

Name:…………………………………………………………………………………………………

Address:…………….…………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

Name of Contact:……………………………………………………………………………..

Telephone No: ………………………………… Fax No: ………………………………….

E-mail address:……………………………………………………………………………..

Company Registration Number: ………………………………………………………….…

We, the Proposer, have read a specimen ECGD Bond Insurance Policy and request that you
inform us whether, and if so, on what terms, the Export Credits Guarantee Department (“ECGD”)
you would be prepared to issue a policy in respect of our liability for the Counter Indemnity (as
defined in the Recital to the Policy) in respect of bonds required under the terms of the Contract
with the Purchaser, details of which Contract have been provided in our application for Basic
Cover.



We understand that an ECGD Bond Insurance Policy can only be issued in conjunction with an
ECGD Buyer Credit facility, Supplier Credit Finance Facility or Export Insurance Policy (which are
referred to in this Proposal as “Basic Cover”) and we indicate below the type of Basic Cover for
which we have applied.

We further understand that references in this Proposal to the “Contract” are to the contract which
forms the subject of our Proposal or Application for Basic Cover, the date of which Proposal or
Application is given below.




Type of Basic Cover:




Date of Proposal/Application for Basic Cover:
1 NAME AND ADDRESS OF PURCHASER
(Paragraph 1 of the Recital and the Bond Insurance Policy)




Is the Proposer aware of the Purchaser having called any bond (whether
issued to the Proposer or any other party)?

(If the Proposer is aware of the Purchaser having called any bond,
it should provide full details on a separate sheet of its headed         Yes   No
notepaper and attach it to this Proposal)




2 NAME AND ADDRESS OF BANK ISSUING THE COUNTER GUARANTEE TO THE
LOCAL BANK OR THE BOND TO THE PURCHASER




3 NAME AND ADDRESS OF BANK ISSUING THE BONDS
(If different from the bank at 2 above)
4 BOND DETAILS*

Type of Bond                                Value of Bond       Commencement         Expiry Date
                                                                    Date




* If any of the bonds are on a reducing basis, please indicate which bond and provide a schedule of
reductions for the bond on a separate sheet of paper and attach it to this Proposal.
    4.1   Are the bonds detailed in the table above (the “Bonds”)
          unconditional on demand bonds and are they
          required under the terms of the Contract?               Yes                 No

    4.2   Do each of the Bonds specify upon their
          face a maximum value and an expiry date?                     Yes           No

    4.3   Does the Contract or any of the Bonds provide for restoration
          of the respective values of the Bonds after a call has been
          made on the Bonds?                                        Yes               No

    4.4   Does the Contract or any of the Bonds provide
          that the bondholder may unilaterally require that
          the validity period of any of the Bonds be extended?         Yes            No

    4.5   Do the Bonds contain any provision for the
          charging of interest upon their respective values?           Yes            No

    4.6   Can the Bonds be assigned as of right to any party?
                                                                       Yes            No

    4.7   Will the Proposer be liable under a counter indemnity
          for the full value of any of the Bonds                       Yes            No


(If the Proposer answers “No” to the questions in paragraph 4.1, 4.2 or 4.7 or “Yes” to the
questions in paragraph 4.3, 4.4, 4.5 or 4.6, it should set out full details of the relevant aspect of the
Bonds on its headed notepaper and attach it to this Proposal.)


Copies of the Bonds or any related counter indemnities should not be sent to ECGD unless it has
specifically requested them




5 BROKERS

We nominate as our broker in respect of this Bond Insurance Proposal and any policy which ECGD
might issue pursuant to it:

Name: …………………………………………………………………………………………………….

…………………………………………………………………………………………………………….

Address: ………………………………………………………………………………………………….

…………………………………………………………………………………………………………….

…………………………………………………………………………………………………………….

Name of Contact:………………………………………………………………………………………..

Telephone No:…………………………………….. Fax No: ………………………………………….

E-mail address:…………………………………………………………………………………………..
6 DECLARATION


6.1   We:

       6.1.1 shall provide ECGD with any information that it may require to assist its consideration of this
       Proposal;

       6.1.2 will not enter into any contract of insurance in respect of any liability upon us associated with
       the bonds detailed above if we accept an offer of an ECGD Bond Insurance Policy;

       6.1.3   shall inform ECGD of any changes that may occur to the details contained in this Proposal;

       6.1.4 acknowledge the information and disclosures which we should give and make to ECGD are
       not limited to the questions asked in this Proposal and that ECGD requires us to disclose any and all
       facts which may be material to its decision to provide a Bond Insurance Policy.
       (All such further information and disclosures should be attached.)


6.2    We understand that:

       6.2.1 (unless the parties agree otherwise) this Proposal, its attachments and all discussions and
       correspondence relating to it are confidential and shall not be disclosed to any third party except:

               6.2.1.1 by us in confidence to our banker or broker or other professional advisers, in each
               case for the purpose for which each of them has been employed by us; and

               6.2.1.2 by ECGD, in accordance with its obligations at law (including the Freedom of
               Information Act 2000 and the Environmental Information Regulations 2004) or its obligations
               to Parliament as a Government Department or, subject to paragraph 6.2.4 below, to ECGD’s
               external legal advisers and other Government Departments;

       6.2.2 where ECGD discloses, pursuant to paragraph 6.2.1.2 above, to its external legal advisers or
       any other Government Department any information contained in this Proposal or its attachments or
       provided in any discussions and correspondence relating to this Proposal, ECGD shall:

               6.2.2.1 notify those legal advisers or, as the case may be, that other Government
               Department of the terms (as set out in paragraph 6.2.2 above) on which that information has
               been provided to ECGD;

               6.2.2.2 in the case of any disclosure to another Government Department, notify us of that
               disclosure (except where to do so would be unlawful or might prejudice an investigation by
               the Serious Fraud Office, the police or any other investigative authority); and

       6.2.3 any Bond Insurance Policy provided as a result of this Proposal may be voided if any of the
       statements contained herein are incorrect or untrue in any material respect.


6.3      We confirm that we understand that it will be a contractual term between us and ECGD in relation to
any Bond Insurance Policy given by ECGD in respect of this Proposal where our consent or agreement is
required for the disclosure by ECGD of the information referred to at the opening of paragraph 6.2.1 above,
we will not unreasonably delay or withhold our agreement or consent to any such disclosure (for example, to
reinsurers and outsource service providers in connection with ECGD’s portfolio management activities, to
other export credit agencies or other persons in connection with the assessment of this Proposal).
6.4     We declare that:

        6.4.1 in this Proposal and any related discussions or correspondence, we have truly stated all
        material facts of which we are aware and that we have neither misrepresented nor omitted any such
        facts which might have a bearing on ECGD’s willingness to provide a Bond Insurance Policy; and

        6.4.2 where this Proposal has been transmitted by electronic means, we have not amended any of
        the declarations or the questions contained in the Proposal for a Bond Insurance Policy (Form BIP6)
        provided to us by ECGD.




Signed on behalf of the Proposer   ______________________________


Capacity of Signatory ______________________________


Date __________________


1 In the case of an incorporated company this Proposal must be signed by a director or a person authorised
by the company’s board of directors or an officer of the company in accordance with the company’s articles
of association or equivalent constitutional document to sign this Proposal, or documents of the same nature
as this Proposal,on behalf of the company.

2 In the case of a partnership, this Proposal must be signed by a partner.


(Form BIP6)

				
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