Applicant:
The party applying for the Letter of Credit.
Beneficiary:
The party in whose favor the Letter of Credit is issued.
Issuing Bank: Exim Credit Bank (ECB).
Letter of Credit (LC): A financial document issued by the Issuing Bank guaranteeing payment to the Beneficiary under specified conditions.
Letter of Credit (LC) Rules: UCP 600: Uniform Customs and Practice for Documentary Credits, ICC Publication No. 600, governing LC operations.
Eligibility:
The Applicant must maintain a Trade related account with ECB.
The Applicant must comply with ECB's Know Your Customer (KYC) and Anti-Money Laundering (AML) policies.
Satisfactory creditworthiness and financial stability as determined by ECB.
Application Process:
The Applicant must submit a duly completed LC application form along with all necessary supporting documents.
The LC application form must include detailed information such as the amount, currency, Beneficiary details, description of goods/services, and terms of shipment.
A non-refundable application fee is payable upon submission of the application form.
Approval and Issuance:
ECB reserves the right to approve or reject the LC application at its sole discretion.
Upon approval, ECB will issue the LC in accordance with the instructions provided in the application form.
The LC will be subject to the Uniform Customs and Practice for Documentary Credits (UCP) as published by the International Chamber of Commerce (ICC).
Amendments and Modifications:
Any amendments or modifications to the LC must be requested in writing by the Applicant.
Amendments are subject to approval by ECB and may incur additional fees.
ECB will notify the Applicant and Beneficiary of any approved amendments.
Validity and Expiry:
The LC will be valid for the period specified in the LC document.
Any extension of the expiry date must be requested by the Applicant and is subject to ECB’s approval and applicable fees.
Fees and Charges:
Fees and charges related to the issuance, amendment, and processing of the LC will be as per ECB's prevailing schedule of charges.
All fees and charges are non-refundable and will be paid by the Applicant.
Documentation and Compliance:
The Applicant must ensure that all required documents are provided in accordance with the terms of the LC.
ECB is not responsible for the authenticity, validity, or accuracy of the documents presented under the LC.
The Applicant must comply with all applicable laws, regulations, and international trade standards.
Payment and Settlement:
ECB will make payment to the Beneficiary upon presentation of compliant documents as per the terms of the LC.
In the event of discrepancies in the documents, ECB will notify the Applicant and seek instructions for resolution.
Any payment disputes or issues arising from the LC will be resolved as per the dispute resolution mechanism outlined in the LC document.
Indemnity and Liability:
The Applicant indemnifies ECB against all claims, damages, and losses arising from the issuance or use of the LC.
ECB’s liability is limited to the terms and conditions set forth in the LC and these terms and conditions.
ECB is not liable for any delays, errors, or omissions in the transmission of messages or documents related to the LC.
Termination:
ECB reserves the right to terminate the LC at any time in case of breach of these terms and conditions by the Applicant.
The Applicant must settle all outstanding fees and charges upon termination of the LC.
Governing Law and Jurisdiction:
These terms and conditions are governed by the laws of the United Arab Emirates.
Any disputes arising from or in connection with the LC will be subject to the exclusive jurisdiction of the courts of the United Arab Emirates.
For further assistance or inquiries, please contact our customer service department.
Exim Credit Bank (ECB)
United Arab Emirates
Tel: 045 5548909
[email protected]
These terms and conditions are subject to change without prior notice. Please refer to the ECB website or contact our customer service for the latest version.