Terms and Conditions for Import Letter of Credit
1(a) You will make payment to the Bank on demand of all sums paid in connection with the Credit and any commission and interest relating thereto. The Bank may in any case on payment debit your account with all sums paid in connection with the Credit and any commission and interest or at any time if it thinks fit with the whole or part of the amount of the Credit and may further debit your account with any indemnity payment payable by you or set out below.
(b) You will indemnify the Bank on demand 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.
(c) In the case that the amount to be debited to your account is denominated in a currency different from the currency of your account the Bank may, unless you have agreed other settlement arrangements with it, pass any such debits in the currency of your account 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.
(d) In the event that any amount payable by you hereunder remains unpaid and you do not have an account with the Bank that we can debit in the same currency as such unpaid amount, you shall pay interest from time to time on such unpaid amount at a rate as may be agreed between you and the Bank, but in the absence of such agreement at a rate per annum equal to the aggregate of 3% per annum and the cost to Bank (as shall be determined by the Bank at the Bank’s absolute discretion) of funding such unpaid amount from time to time, and (without prejudice to the Bank’s right to require payment of such interest) all such interest shall be compounded (both before and after any demand or judgement) at such times as the Bank shall from time to time fix (but no more than monthly).
2 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.
3 The Bank may arrange for the Credit to be issued by its correspondent bank and the correspondent bank may in turn arrange for the Credit to be issued by an agent whether or not in the name of the 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.
4 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 or, in each case, any successor publication in force from time to time.
5 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.
6 If two or more parties (other than the Bank) sign this document the obligations hereunder are joint and several.
7 The Credit is intended to be and will be enforceable by the beneficiary and any other parties to it according to its terms and conditions. Otherwise, unless expressly provided to the contrary herein in Clause 10, no person other than you and the Bank shall have rights under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of these terms and conditions.
8 If you are a customer of:
• Lloyds Bank International Limited
• Lloyds Bank Private Banking Limited
• Bank of Scotland plc
8.1 you acknowledge and agree that:
8.1.1 each of the above banks has appointed Lloyds Bank plc as its agent for the purpose of international banking transactions carried out at the request of its customers. Accordingly, if you are a customer of one of these banks, although Lloyds Bank plc will effect the transaction contemplated in these terms and conditions in its own name, you acknowledge and agree that it will do so as agent for your bank and that bank will indemnify Lloyds Bank plc in respect of the transaction.
8.1.2. these terms and conditions are therefore to be read as being between you and your bank and that all references in these terms and conditions to the “Bank”, “us”, “we”, “Lloyds Bank” and “Lloyds Bank plc” shall be construed accordingly to give effect to this clause.
8.1.3. Lloyds Bank plc may require the disclosure by Lloyds Bank International Limited, Lloyds Bank Private Banking Limited or Bank of Scotland plc (as the case may be) of information relating to its accounts (including information stored on its database), and that therefore Lloyds Bank International Limited, Lloyds Bank Private Banking Limited or Bank of Scotland plc (as applicable) is authorised to disclose all such information as may be requested by Lloyds Bank plc for the purpose of carrying out international banking transactions.
8.2 in any case where you have given Lloyds Bank International Limited, Lloyds Bank Private Banking Limited or Bank of Scotland plc information about individuals you represent and confirm that those individuals have appointed you to act for them and consent to the processing of personal data for the purpose of carrying out international transactions and to the transfer of that information abroad and to receive any data protection notices on their behalf.
8.3 the account details to be entered into the application for the transaction contemplated in these terms and conditions should be those of your appropriate account with your bank which will be debited or credited with any sums due in respect of the transaction.
9 The Bank shall not be liable for any loss of profits, business, data or information or for any incidental, indirect, special or consequential damages whether arising from negligence, breach of contract or otherwise, even if informed of the possibility of those losses or damages. Except as otherwise specified herein the Bank shall not be liable for any direct losses arising out of or relating to any of its actions or omissions to act in respect of the transaction contemplated by these terms and conditions, except to the extent that any such losses are caused by the Bank’s wilful misconduct, fraud or gross negligence.
10 The Bank and/or any member of the Lloyds Banking Group may be subject to sanctions and/or embargoes imposed by the international community including the UK, EU, UN and the USA. Please be advised that the Bank may not accept instructions from or may refuse to make any payment to the beneficiary and/or the nominated bank (if any) or take any action under or in connection with the Credit if it would result, or is in the Bank’s reasonable opinion likely to result, in a breach by the Bank or any member of the Lloyds Banking Group or any of their respective employees of any sanction or embargo whether or not imposed in the UK and we will not be liable for any loss, damage, cost or expense arising out of or in connection with any failure to pay or to act as a result of any such sanction or embargo. The Bank and/or its agents shall be permitted to disclose to the relevant authorities such information related to the Credit as may be required.
11 These terms and conditions and any disputes or claims arising out of or in connection with its subject matter (including non-contractual obligations) shall be governed by, construed and take effect in all respects in accordance with the laws of England. The parties irrevocably agree to submit to the exclusive jurisdiction of the English courts to settle any dispute or claim that arises out of or in connection with these terms and conditions (and any non-contractual obligations). You acknowledge that the use of the credit in certain countries is subject to specific local legislation and regulations and you agree to comply with any such legislative requirements and regulations as though they were set out herein.