1。This advice, revocable at any time without notice, is for your guidance only in preparing drafts and documents and conveys no engagement or obligation on our part of our above mentioned correspondent.
2.We undertake to honour your drafts drawn and negotiated in conformity with the terms of this credit provided that such negotiation has been made prior to receipt by the notice of cancellation.
3.We open irrevocable credit number 3512788 in amount of US$ 667,678.00 available with freely negotiable by any Bank, except as otherwise expressly stated herein, this credit is subject to Uniform Customs and Practice for Documentary Credits ( 1993 Revision ) , International Chamber of Commerce No. 500.
4.We hereby agree with you that all drafts drawn under and in compliance with the terms of the credit will be duly honoured on due presentation and on delivery of documents specified to Payment Bank.
5. Provided such drafts are drawn and presented in accordance with the terms of this credit, we hereby engage with the drawees, endorsors and bona-fide holders that the said drafts shall be dull accepted on presentation.
6.Available by your drafts on Issuing Bank at 90 days after sight honoured at presentation. Kindly note that drafts are payable with interest for up to 90 days calculated at issuing bank rate per annually prevailing at the date of acceptance, such interest being for Buyer’s account.
7.We request Advising Bank to advise xxx that we have opened our clean credit in their favour by order of xxx for the sum of xxx available by the beneficiary’s signed receipt indicating thereon the number of this credit.
8. We open our Irrevocable Standby Letter of Credit No. Xxx in favour of xxx (Beneficiary) for account of xxx (Accountee) for xxx (amount) available by the Beneficiary’s signed statement countersigned by the Accountee, certifying that the accountee does not enter into contract despite accountee’s success in the undermentioned tender.
9.The Negotiating Bank is hereby authorized to make advance to the Beneficiary up to an aggregate amount of USD200, 000.00 (20% of the amount of this credit). The advances, with the interest at ruling rate of exchange at the time of payment of such advance, are to be deducted from the proceeds of the drafts drawn under this credit.
10.This credit shall not be available unless and until a reciprocal credit is established by xx Bank in favour of ABC Co. For a sum of US$5790.00.