GUIDELINES FOR REQUESTING LETTERS OF CREDIT (to be transcribed onto letterhead of Seller/Beneficiary) The verbiage below are merely suggestions. It is the customer’s sole decision to use it or not. Further, it should not be construed as a promise or agreement to handle a transaction. Accordingly, Union Bank of California, N.A. is to be held harmless against all liabilities incurred in connection with the use of this language. (Letterhead of Seller/Beneficiary) TO: (Name of Buyer) Please arrange through your banker to provide us with an irrevocable commercial letter of credit with the following terms and conditions: ISSUANCE: Please ensure that the letter of credit is received by us ___days before our agreed upon shipment date. Note: Letters of credit should BENEFICIARY: (Beneficiary’s Complete Name) normally be advised through (Address) your bank’s central (Telephone & Telefax Numbers) international processing ADVISING BANK: Union Bank of California center as illustrated here Trade Services Operations (unnecessary delays may 1980 Saturn Street occur if you request the letter Monterey Park, CA 91755-7417 of credit to be advised USA through your local bank Telex: 18812 UNION BK/4999030 UNION BK branch). SWIFT: BOFC US 33 LAX CABLE: UNION BANK LOS ANGELES CONFIRMATION BY A U.S. BANK: ¨Not Required ¨The letter of credit must be confirmed by a major United States bank, preferably Union Bank of California, and not a U.S. branch or agency of the issuing bank. LETTER OF CREDIT EXPIRATION DATE: Note: Confirmation fees are most often paid by the LATEST SHIPMENT beneficiary. DATE: PRESENTATION: Documents to be presented within ____ days from shipping date but within the validity of the letter of credit (generally 21 days for ocean; 15 days by air) CURRENCY/AMOUNT: SHIPPING TERM: ¨FOB (Free on Board place of loading - vessel/aircraft) ¨CIF (Cost, Insurance, and Freight) ¨CFR (Cost and Freight) ¨Other PAYMENT TERM: ¨Sight Letter of Credit ¨Usance (Time) Letter of Credit ¨Draft drawn ___days after sight ¨Draft drawn ___days after bill of lading/air waybill date ¨Draft to mature___________ (fixed date draft) DOCUMENTS Note: The options shown REQUIRED: Other than for normal import documentation which you may require (i.e., commercial invoice, generally provide greater packing list, etc.), the letter of credit must call for the following transport document(s): control to the exporter over ¨For ocean shipments, a full set of clean on-board ocean bills of lading. the merchandise until ¨For air shipments, the airway bill must show merchandise consigned to issuing payment is authorized. bank. FORM 05926 (01/2003) GUIDELINES FOR REQUESTING LETTERS OF CREDIT (continued) (to be transcribed onto letterhead of Seller/Beneficiary) The verbiage below are merely suggestions. It is the customer’s sole decision to use it or not. Further, it should not be construed as a promise or agreement to handle a transaction. Accordingly, Union Bank of California, N.A. is to be held harmless against all liabilities incurred in connection with the use of this language. INSURANCE COVERED BY: ¨Buyer ¨Seller (in which case an insurance certificate/policy is required) COVERING A simple, brief description of SHIPMENTS OF: merchandise is preferable. as per Purchase Order Number/Contract: SHIPMENT FROM: (Port/Airport) SHIPMENT TO: (Port/Airport) PARTIAL SHIPMENT: ¨Permitted ¨Prohibited TRANSSHIPMENT: ¨Permitted ¨Prohibited CHARGES: GENERAL: All banking charges in the USA are for account of: ¨Buyer ¨Seller All banking charges outside the USA are for account of: ¨Buyer ¨Seller TIME (USANCE) LETTERS OF CREDIT: Discount charges are for the account of: ¨Buyer ¨Seller Payment of these charges is negotiable between the Acceptance commission is for the account of: ¨Buyer ¨Seller buyer and seller. REIMBURSEMENT INSTRUCTIONS: Please communicate the following reimbursement requirement to the letter of credit issuing bank: “Reimbursements should preferably be on your bank’s account at Union Bank of California or, if not possible, at a bank located in the State of California and authority must be given to Union Bank of California to claim reimbursement by cable.” PLEASE NOTE CAREFULLY: If you are unable to meet any terms and conditions, please contact us as soon as possible, and PRIOR to having the credit issued. Any deviation from the above terms and conditions without our agreement may result in additional bank charges, and a delay in the shipment until the credit can be amended.
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