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ISP98 PRESENTATION - K. M. LUTFOR RAHMAN CDCS - Rule 01 - CL
ISP98 PRESENTATION - K. M. LUTFOR RAHMAN CDCS - Rule 01 - CL
(ISP98)
A
K. M. LUTFOR RAHMAN CDCS
PRESENTATION
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20-Feb-20xx
The General Manager,
BAPEX, Dhaka, Bangladesh.
We ABC Bank Ltd hereby irrevocably undertake to pay you, without cavil or
argument, any sum or sums not exceeding in total an amount of USD10,000.00
upon receipt by us of your written demand accompanied by a written statement
that the tenderer, XYZ Ltd is in breach of its obligation under the tender
conditions, because the tenderer
HAS WITHDRAWN ITS TENDER DURING THE PERIOD OF TENDER
VALIDITY or
FAILS OR REFUSE TO EXECUTE THE CONTRACT FORM when awarded the
tender.
This standby expires …………………………………………………………………………………………
This standby is subject to ISP98 rules.
ISP98 Rule 8.02 excluded.
UCP ISP
UCP ISP
UCP ISP
Interpretations
A standby letter of credit or
other similar undertaking,
however named or described,
whether for domestic or
international use, may be made
subject to these Rules by express
reference to them.
Interpretations
Any of the ISP98 rules may
be modified or excluded by
express indication in the
undertaking subject to these
rules.
We ABC Bank Ltd hereby irrevocably undertake to pay you, without cavil or
argument, any sum or sums not exceeding in total an amount of USD10,000.00
upon receipt by us of your written demand accompanied by a written statement
that the tenderer, XYZ Ltd is in breach of its obligation under the tender
conditions, because the tenderer
HAS WITHDRAWN ITS TENDER DURING THE PERIOD OF TENDER
VALIDITY or
FAILS OR REFUSE TO EXECUTE THE CONTRACT FORM when awarded the
tender.
This standby expires …………………………………………………………………………………………
This standby is subject to ISP98 rules.
ISP98 Rule 8.02 excluded.
Any of the ISP98 rules
may be modified or
excluded by express
indication
K. M. Lutfor Rahman CDCS Presentation
RULE 1: GENERAL PROVISIONS
Exception Exception
We ABC Bank Ltd hereby irrevocably undertake to pay you, without cavil or
argument, any sum or sums not exceeding in total an amount of USD10,000.00
upon receipt by us of your written demand accompanied by a written statement
that the tenderer, XYZ Ltd is in breach of its obligation under the tender
conditions, because the tenderer
HAS WITHDRAWN ITS TENDER DURING THE PERIOD OF TENDER
VALIDITY or
FAILS OR REFUSE TO EXECUTE THE CONTRACT FORM when awarded the
tender.
This standby LC expires ………………………………………………………………………………
This standby LC is subject to ISP98 and UCPDC600 Rules.
ISP98 Rules
General principles
1.06 Nature of standbys
(a) A standby is an irrevocable, independent,
documentary, and binding undertaking when
issued and need not so state.
A standby is automatically an
Nature of standbys
irrevocable, independent,
documentary, and binding
undertaking when issued.
General principles
1.06 Nature of standbys
(b) Because a standby is irrevocable, an issuer’s
obligations under a standby cannot be amended or
cancelled by the issuer except as provided in the
standby or as consented to by the person against
whom the amendment or cancellation is asserted.
General principles
1.07 Independence of the issuer-beneficiary
relationship
An issuer’s obligations toward the
beneficiary are not affected by the issuer’s
rights and obligations toward the applicant
under any applicable agreement, practice, or
law.
General principles
1.08 Limits to responsibilities
An issuer is not responsible for:
(a) performance or breach of any underlying transaction;
(b) accuracy, genuineness, or effect of any document
presented under the standby;
(c) action or omission of others even if the other person is
chosen by the issuer or nominated person; or
(d) observance of law or practice other than that chosen in
the standby or applicable at the place of issuance.
Terminology
1.09 Defined terms
In addition to the meanings given in standard banking
practice and applicable law, the following terms have or
include the meanings indicated below:
(a) Definitions
“Applicant” is a person who applies for issuance of a standby
or for whose account it is issued, and includes (i) a person
applying in its own name but for the account of another
person or (ii) an issuer acting for its own account.
“Beneficiary” is a named person who is entitled to draw under
a standby. See Rule 1.11(c)(ii).
“Presentation” means,
Presentation
depending on the context, either
the act of delivering documents
for examination under a standby
or the documents so delivered.
Interpretation
(a) These Rules are to be
of ISP Rules interpreted in the context of
applicable standard practice.
(b) In these Rules, “standby
letter of credit” refers to the type
of independent undertaking for
which these Rules were
intended, whereas “standby”
refers to an undertaking
subjected to these Rules.
a K. M. LUTFOR RAHMAN CDCS presentation
RULE 1: GENERAL PROVISIONS