APPLICATION FOR IRREVOCABLE STANDBY LETTER OF CREDIT/LETTER OF GUARANTEE

To: Bank of China (Canada) Date: 2011

Please establish by MAIL an Irrevocable Standby Letter of Credit in accordance with the following:

SWIFT Letter of Guarantee

______

Standby LC / LG No. (for Bank use only) / Expiry date and place:
One year from date of issuance at BOCC, Canada

Applicant (full name and address)

/

Beneficiary (full name, address, phone no., fax no.)

Currency and Amount (in figures and in words) / Partial drawing
allowed
not allowed
Advising Bank (if any) (If not specified, a Bank of China branch /subsidiary located in the Beneficiary’s country/region will be chosen as the advising bank.) / Purpose:
as per attached contract no.
Details as below:
Documents required for drawing (optional) presented via Beneficiary’s banker:
Demand in writing
Sight Draft
Signed Beneficiary’s Certificate stating a default
Other (specify):
As per attached draft format copy of the L/G.
SPECIAL INSTRUCTION (Optional)
Automatically extend this standby L/C or Guarantee for ______months subject to a prior Notification of non- renewal ______days before expiry.
We will advise non-renewal of this LG/Standby LC by stamped/signed written notice to your bank at least _____
days before expiry otherwise please consider this LG/Standby LC to be extended automatically.
Format of the Standby L/C or Guarantee is attached.
All banking charges outside the country of issuance are for account of Applicant Beneficiary.
Others:
By signing this form, the Applicant hereby requests Bank of China (Canada) to issue an Irrevocable Guarantee / Standby LC substantially in accordance with the foregoing instructions and acknowledges, agrees to be bound by the terms and conditions on the General Trade Finance Agreement, this Application and the Letter of Indemnity overleaf.
The Applicant hereby acknowledges and agrees that except as expressly provided by the instructions, a Standby Letter of Credit shall be subject to International Standby Practices 1998, ICC Publication No. 590 as revised from time to time, and that a Demand Guarantee is subject to Uniform Rules for Demand Guarantees, ICC Publication No. 458 and subsequent revisions.
Please debit our CAD / USD Account No. for
your commission and charges.
Please debit our CAD / USD Account No. ______
as 100% / ______% margin deposit.
For queries, please contact Mr. / Ms. ______
at Tel No. ______/ Applicant:
______
Applicant’s Signature(s)
FOR BANK USE ONLY / Signature(s) Verified by

LETTER OF INDEMNITY

IN CONSIDERATION of the Bank agreeing to issue a Guarantee or a standby LC (hereinafter called “the Guarantee”), which is substantially in accordance with the attached form at our request as per the application overleaf, we, the Applicant as indicated in the page 1 of this Application Form, hereby agree the following :

1.  We shall indemnify the Bank of any and all losses or damages that the Bank may suffer from the issuing of the Guarantee.

2.  We shall pay commissions, fees and charges to the Bank according to their current rate on demand.

3.  We shall reimburse the Bank of all expenses that the Bank may incur in connection with the Guarantee upon demand.

4.  The Bank is authorized to set-off or apply any money that we maintain with the Bank to settle any amount the Bank pays under the Guarantee without prior demand or notice to us. If our deposit shall not be sufficient to reimburse the Bank of all the payments that the Bank makes under the Guarantee, we undertake to pay any further sum to keep the Bank free from any losses. If reimbursement from us is not made on the same day when the Bank pays under the Guarantee, in addition to the amount paid, we undertake to pay interest on the outstanding amount at the Bank’s best lending rate plus 3% per annum until our full payment.

5.  This indemnity is in addition and without prejudice to any securities of any kind now or in the future held by the Bank.

6.  This indemnity shall be irrevocable on our part and our liabilities hereunder shall not be discharged before the Bank acknowledges the same. This indemnity shall be binding on the respective heirs, executors, administrators, successors and assigns of the undersigned, provided always that the undersigned cannot assign its rights/liabilities herein without the written approval of the Bank. The provisions hereof shall enure to the benefit of the successors and assigns of the Bank.

7.  A written signed demand from the Beneficiary pursuant to the Guarantee (hereinafter called “the Demand”) should be the conclusive evidence of the default on our part and the Bank shall be under no obligation to verify the genuineness of the Demand. We agree to reimburse the Bank of any money paid under the Guarantee.

8.  In case the Guarantee contains an auto-renewal clause, we understand and agree that the Bank has the right not to renew the Guarantee upon the Bank’s own discretion.

9.  The undersigned acknowledges receipt of a copy of this instrument.

10.  This indemnity shall be governed by the laws of the Province of British Columbia / Ontario.

Applicant:

______

Applicant’s Signature(s)

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