Fee is livable but to advise precisely, need documents and project detail and seller buyer information.
SBLC
We want to issue a bank guarantee for 50 million dollars Can you help us with the issuance And what are the conditions How do you verify that the instrument is valid? And what are the conditions required And what are the fees We have projects in Saudi Arabia that we want to accomplish ... Does the issuance of a guarantee require a fee? And how do we make sure that the SBLC will reach our bank and accept Thank you
Asked 1 year ago in Property Law
Religion: Muslim
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11 Answers
We have an offer from Euroclear Bank and it is on the screen, but we could not verify the authenticity of the tool, noting that the person who gave us the offer wants us to pay him an advance fee and we are not sure whether I can send the offer to you and verify the authenticity of the documents.
Asked 1 year ago
This must be fraud.
You can engage any lawyer for vetting the bank guarantee to be given by you
bank must have given you the format of BG
Bank will charge you fees for issue of BG
No need to pay any advance fees
The banking provider provided us with an ISIN number in the name of the company, but did not send us MT799, and this tool is in the Euroclear Bank screen, although the tool number is correct in Barclays Bank. But he wants us to provide 35 thousand euros to send the credit, knowing that we have offered to send him the fee after the arrival of the credit and acceptance of our bank.
Asked 1 year ago
MT799 essential to confirm. Don`t pay any amount.
Contact any other banking provider
if they also want advance fees you have no other option but to pay
- A standby letter of credit(SBLC) is a legal instrument where a bank guarantees the payment of a specific amount of money to a seller if the buyer defaults on the agreement.
- Further , In order to issue a SBLC , a bank will typically require a pledge of cash as collateral.
- Further, the bank may charge a service fee of 1% to 10% for each year when the financial instrument remains valid, and if the buyer meets its obligations in the contract before the due date, the bank will terminate the SBLC without a further charge to the buyer.
- You can correspondence with the said bank for the verification of the instrument and to pay any advance fees.
The Central Vigilance Commission (CVC) suggests using electronic verification methods like digitally signed emails, websites, or emails to check for fraudulent documents. Organizations can also create their own procedures that follow the RBI's guidelines
The Reserve Bank of India (RBI) recommends that the names, designations, and code numbers of the officers signing the guarantee be included under their signatures
You can contact the bank.
The beneficiary can request confirmation of the guarantee from the issuing bank by email. For example, ICICI Bank recommends emailing [deleted] or ICICI Bank Limited, Trade Finance Operations Group. For Indian Bank guarantees issued by Large Corporate Branches (LCBs), the beneficiary can email [deleted].
An SBLC is considered a secondary type of payment. The bank will only release payment if the buyer defaults and the seller meets the terms of the contract. The bank may provide funding for the SBLC if the client is considered creditworthy.
SBLCs can involve risks, including foreign exchange risk, penalty risk, and decreased collectibility.
You can choose the lawyer of your choice either one from this website or outside and on the terms of the chosen lawyer you can get all the documents vetted and have an opinion on all such further issues.
Before making any payment in advance it would be better that you confirm their credentials and genuineness so that you are not deceived after taking money from you.
MT 799 is a free format SWIFT message type that banks use to securely communicate information about bank guarantees (demand guarantees) and letters of credit (documentary credits). It's an essential part of international trade and allows banks to communicate with each other through the SWIFT system without transferring funds or paying. MT 799 can confirm funds or proof of deposits for a potential trade, or certify financial capability. It demonstrates to the vendor that the buyer has the money available to perform the transaction, and that the payment will come from a verifiable source like a bank. However, in its standard format, MT 799 is not a promise to pay or a form of bank guarantee.
However you may proceed in this regard with abundant caution by verifying the details through another reliable source.
For issuing a BG you will have to approach your bank or any other bank
You will need adequate funds in your account or proof of receivables to enable the bank to issue the BG in favor of the beneficiary
Upon what conditions you want the bank to issue the BG in favor of the beneficiary would depend on the terms stipulated by you or the beneficiary for accepting the BG
Other things what you wrote in the follow up I cannot understand
