- •Banking 1 documentary credit
- •1.1 The importer applies to the bank for opening the credit
- •1.2 The buyer places an order and informs the seller of the opening of the l/c
- •1.3 The seller receives the order and confirms it
- •1.4 The bank advises the seller that the credit is available (I.E. Confirms the credit)
- •1.5 The seller sends the documents to the bank
- •Documentary credit part II
- •2.1 The buyer replies to the seller’s request to prolong the time of delivery and discusses amendments to the l/c
- •2.2 The buyer advises the bank of the amendment agreed upon with the seller
- •3.1 The buyer informs the seller of discrepancies in the documents
- •3.2 The buyer advises the seller of payment and asks to comply with the requirements of the credit
- •4 The bank advises the buyer of payment
- •Part II
- •Vocabulary
- •Part II
- •Part II
- •Banking 2 documentary collection. Some aspects of commercial banking
- •1.1. The collection order of a bank
- •1.2 Documents are presented for collection
- •1.3 A collection order is not acknowledged
- •1.4 Returning the accepted drafts
- •1.5 Payment guarantee granted by the bank
- •2 Letter of guarantee
- •2.1 Correspondance on letter of guarantee
- •2.2 Payment guarantee granted by the bank
- •2.3 Performance guarantee granted by the bank
- •Part II
- •3 Some aspects of commercial banking
- •3.1 Opening a current account
- •3.2 Problems on standing order
- •3.3 Request for an overdraft
- •3.4 Advice of granting an overdraft
- •Vocabulary
- •Part II
- •Part II
- •Transportation
- •1.1 Request for a quotation for delivery by road
- •Quotation for delivery by road
- •1.3 Advice of delivery from consignor to consignee
- •1.4 Waybill
- •2.1 Delivery by rail
- •2.2 Consignor's reply
- •2.3 Railway bill
- •3.1 Delivery by air. Enquiry for freight rates
- •3.2 Quotation for delivery by air
- •3.3 Airway bill
- •1.4 Waybill
- •2.3 Railway bill
- •3.3 Airwaybill
- •Consignment; to consign
- •Vocabulary
- •Marine transportation
- •Request for freight rates and sailings
- •Shipping company’s reply
- •1.3 Shipping instructions sent to a shipping company
- •1.4 Instructions to a forwarding agent
- •1.5 Advice of despatch
- •1.6 Bill of lading
- •2.1 Telex enquiry for a time-charter
- •2.2 Enquiry for a time-charter
- •2.3 Offer of a vessel for carrying ore
- •2.4 Shipbroker’s reply confirming the fixture of a vessel
- •2.5 General charter
- •1.6 Bill of lading
- •2.5 General charter
- •Liner vs tramp
- •Cargo, freight, load
- •Shipping conference
- •Baltic Exchange
- •Loading dates
- •Vocabulary
- •Packing and marking
- •1.1 Enquiry to a container company
- •1.2 Container company’s reply
- •2.1 Customer’s instructions to packer
- •2.2 Packer’s information to customer
- •3 Information about marking
- •Barrel, cask, hogshead, keg
- •2. Paint vs dye
- •3. Stevedore, stevedores
- •Vocabulary
- •Contract of carriage
- •Carnet; tir Carnet; tir; cmr
- •Vocabulary
- •Insurance
- •Request for marine insurance quotation
- •1.2. Quotation for marine insurance
- •1.3. Claim
- •1.4. Reply to claim
- •2.1. Request for open cover
- •2.2. Quotation for open cover
- •2.3 Notification of shipment under open cover
- •Indemnification vs indemnity
- •Average
- •Average adjuster, average adjustment
- •4. Assessor
- •5. Underwriter
- •6. Interest
- •Vocabulary
1.5 Payment guarantee granted by the bank
UNION BANK OF SWITZERLAND Haldenstrasse 118 3000 Bern 22 Switzerland |
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Our ref. Your ref.
15th June 20__ SCIPELLI SPA, Milano Cc: Vnesheconombank, Moscow Banca Commerciale Italiana, Milano
Dear Sirs,
In accordance with Contract No. 33/A/51 of 23 May 20__signed between the Seller – SCIPELLY SPA, Milano and the Buyer – Novoimport, Moscow, the Buyer undertakes to pay to the Seller for the fabric sold in U.S. Dollars the sum $ 450,000 representing 90 per cent of the contract value against drafts plus three percent annual interest for the granting of deferred payment.
We hereby unconditionally guarantee fulfilment by the Buyer of his obligations with regard to the payment of the sums against the Seller’s drafts on the dates stated in Article 3 of the present contract.
If If the Buyer for some reason fails to effect payment in whole or in part or does not accept the drafts on the dates stipulated by Article 3 of the present Contract we shall pay to Banca Commerciale Italiana, Milano in favour of the Seller the amounts due to him under the present Contract on the Seller’s first demand. Cont. |
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The present Letter of Guarantee will be valid till the date of full payment to the Seller of the sums against the above mentioned drafts.
Yours faithfully, S.Schiller S.Schiller Union Bank of Switzerland
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2 Letter of guarantee
There are two types of bank guarantees: payment guarantees and performance (contractual) guarantees. Payment guarantee secures payment under a contract (Point 1.5 is an example of a payment guarantee). Performance guarantee secures proper fulfilment of contractual obligations, delivery of goods, return of an advance payment in case of any infringement of the contract, participation in tenders etc.
2.1 Correspondance on letter of guarantee
Putney & Raven Merchants Ltd. 123-5 Lowland Street London EC1 2RH |
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Our ref. Your ref.
14 May 20__ Stroganov & Co. RF, Moscow, Rusakovskaya st., 6
Dear Sir,
Much to our regret we have to inform you that so far we have not received a bank guarantee from you.
In view of the above we would like to remind you of your letter of 18 April, this year, in which you asked us to change the method of payment by L/C as inconvenient owing to the difficulties and extra expenses connected with its opening.
Meeting you halfway we made you a concession and suggested payment for collection terms. You accepted the proposed method of payment and undertook to submit a first-rate bank guarantee for 100% of the contract value within three weeks.
However, as we are still without your bank guarantee we have had to suspend shipment of the goods. Cost of storage will be charged to your account. Cont. - 2 -
We urge you to inform us immediately when the bank guarantee will be submitted and ask you to confirm your consent to cover the expenses for the storage of the goods kept at the port of loading.
Yours faithfully, D.Raven D.Raven Director
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