Terms and Conditions for Import Letter of Credit

  1. The documents and the goods and all proceeds of sale and of insurance, and all your rights as unpaid sellers, shall be pledged to the Bank and be security to the Bank for all obligations and liabilities incurred by it or its correspondents in connection with the Letter of Credit (the "Credit") and for all disbursements in connection with the goods (which you hereby authorise the Bank to pay for your account) and, to the fullest extent permitted by law, all your other liabilities to the Bank present and future. 
  2. You will keep the goods fully insured and in the event of your failing to do so the Bank may (but shall not be obliged to) insure the goods at its discretion and at your expense, and the Bank may debit your account with the cost of so doing. 
  3. The Bank may on payment debit your account with all sums paid in connection with the Credit or the goods and any commission and interest or at any time if it thinks fit with the whole or part of the amount of the Credit. You will place the Bank in funds on demand to meet such debits and at the latest three days before the due date (or earlier if required by the Bank) to meet any acceptances or deferred payment undertakings.

    In the case of a Credit in a currency other than Euros, the Bank may, unless you have agreed other settlement arrangements with it, pass any such debits in Euros at the Bank's rate of exchange ruling when it passes such debit or, if passed after payment, at the Bank's rate ruling when it receives advice of payment.

    In the event of default the Bank may at any time (whether before or after arrival) sell the documents or goods and it may debit your account with any shortfall.

    You will indemnify the Bank against all claims, demands, costs, charges and expenses which may be brought or preferred against the Bank or which it may incur arising out of or in connection with the Credit unless directly due to its negligence or default. 
  4. The Bank's rights against you shall not be affected by, and the Bank and/or its correspondents shall not be responsible for any loss or damage to the goods however or whenever caused, their quantity, quality or condition or their detention by any person for whatever reason, the loss, validity, sufficiency, genuineness or accuracy of the shipping, insurance or any other documents or failure for any reason by the Bank, its correspondents or any other person to store, protect or insure the goods, and all acts and omissions of the drawers and/or vendors and/or the Bank's correspondents and/or any other person shall be at your risk.  
  5. The Bank may arrange for the Credit to be issued by its correspondent bank. If the Bank elects to do so, the Bank will retain full responsibility for the Credit as between the Bank and you, and the respective rights and obligations of the parties will be the same as if the Bank had issued the Credit itself. 
  6. You will sign or execute and deliver any transfer, deed or other document which the Bank may reasonably require from you to obtain possession of or perfect its title to the goods and/or to deliver the goods or vest the goods in any purchaser(s) from the Bank, or otherwise for the recovery of any proceeds of sale or insurance. 
  7. If the Credit is revocable it may be cancelled by the Bank at any time, but cancellation by the Bank shall be without prejudice to your and the Bank's respective obligations as regards any bills (or documents) negotiated or accepted or payments made there under or (where the Credit is available by deferred payment) documents taken up before notice of such cancellation has been received at the place where the Credit is available. 
  8. All teletransmission messages in connection with the Credit shall be dispatched at your risk and cost and (save where it is directly due to the Bank's negligence or default) the Bank shall not be responsible for any loss caused by mistakes, mutilations or omissions in their transmission, coding or decoding or interpretation when received or by delay on the part of the teletransmission companies and/or operators. 
  9. If two or more parties sign this document the obligations hereunder are joint and several. 
  10. The Credit requested by this application is intended to be and will be enforceable by the Beneficiary and any other parties to it according to its terms and conditions. Otherwise, neither this application nor the Credit is intended to confer any benefit on, or to be enforceable by, any third party. 
  11. The Credit is to be subject to the "Uniform Customs and Practice for Documentary Credits", 2007 Revision, International Chamber of Commerce Publication No. 600 and Reimbursement Authorities issued, if any, will be subject to the "Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits", International Chamber of Commerce Publication No. 525.
  12. Bank

    Notwithstanding anything to the contrary in these terms and conditions a customer of Lloyds Bank plc shall be (and shall be deemed to be) entering into a contract with Lloyds Bank plc and a customer of Lloyds Bank International Limited shall be (and shall be deemed to be) entering into a contract with Lloyds Bank International Limited and all references in these terms and conditions to the "Bank", "us", "we", "Lloyds", "Lloyds Bank" and "Lloyds Bank plc" shall be construed accordingly to give full effect to this clause.