Bank Guarantees

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Supplementary Information

Very often contracts stipulate that the buyers are to provide a first-class bank guarantee to avoid failures in payment, if contracts envisage payment on a collection basis, on credit etc. If the chemicals had been bought on such terms a specimen bank guarantee might look like this:

Midland Bank Limited London

Guarantee No 1156- Contract No 32-1 Chemico Co., Kyiv

We hereby irrevocably and unconditionally undertake to pay to Chemico Co., Kyiv the sum of GBP 1750,000.00 (one million seven hundred and fifty thousand English pounds sterling) if this amount is not paid at maturity by Petro Co., Liverpool, England for the shipment of 10 000 kgs of Chemicals ST under the above Contract made between Chemico Co., Kyiv and Petco Co., Liverpool. Your simple claim in writing should certify that the Buyers have failed to make due payment

The amount shall be credited to the account indicated by you, not later than 30 days after the bill of lading date against the commercial invoice and shipping documents stipulated by the contract.

This letter of guarantee is valid until 1 April, 2010 if the documents have been presented within the validity of this guarantee.

Expenses in connection with the opening and utilization of this letter of guarantee are to be borne by the National Bank, Liverpool.

Yours faithfully,

p.p. Midland Bank Limited

Exercise XIII. Translate some sentences into Ukrainian:

1.Sometimes the Buyers are to provide a first – class bank guarantee.

2. The same is true about payment on credit terms

3. The specimen bank guarantee might be as follows…

4. The expenses shall be paid by the opener.

5. We irrevocably undertake to pay… at maturity.

6. You should send a claim in writing

7. The seller wants to avoid failures in payment.

8. The money shall be credited to your account.

Дата добавления: 2014-11-25