TERMS AND CONDITIONS FOR ISSUANCE OF LC BACKED BY FD

1. INTRODUCTION

These terms and conditions (“Terms”) apply to and regulate the provision of the Credit (as defined in the Import LC Application form) granted / extended by ICICI Bank Limited (“ICICI Bank”) to its customers. All capitalized terms used herein but not defined shall have the respective meanings assigned to them in the Application.
 

2. INTERPRETATION

All references to singular include plural and vice versa and the word "includes" should be construed as "without limitation". All Transactions are entered into in reliance on the fact that the Terms and all other terms and conditions specified are to be read together.
 

3. GENERAL

1. I/We hereby agree and undertake to accept and pay for all the documents negotiated thereunder in accordance with terms thereof, as also for any disbursement made or liability incurred by ICICI Bank on my/our account under the Credit, together with interest, costs, charges and expenses due to ICICI Bank in respect thereof as hereinafter mentioned.
2. I/We further agree to pay to you interest on the amount (a) payable in respect of my/out liability under the Credit, at the rate prescribed by ICICI Bank Ltd., from time to time for advances to non-priority sectors.
3. The aforesaid rate of interest shall however be applicable only during the period from the date of negotiation of the bill/documents under the Credit up to and inclusive of the date immediately preceding the rate of payment by me/us or the date of crystallization of my/our liability on the foreign currency bill pursuant to clause below, whichever is earlier, after, which interest shall be payable at the rate stipulated in the said below clause.
4. I/We further agree to pay on ICICI Bank’s demand (1) the charges that may be levied as per FEDAI rules in force from time to time for any early / late delivery of the relevant foreign exchange/currency under the Forward Exchange Contract, if, booked my me and (2) the commission or handling charges at the rate as applicable on the amount of the bill(s) drawn under the Credit.
5. . I/We further agree to pay on demand, all costs (legal costs on full indemnity basis) customs duty, penalty, demurrage, storage charges, clearing and forwarding charges and all other charges and expenses which you may be put to or suffer or incur in connection with the goods and / or the documents of title of goods covered by the credit including for re-shipment thereof for any reason whatsoever, or in the exercise of enforcement of any right or power hereby conferred or otherwise however, and further agree and undertake to hold you safe and harmless and keep you indemnified against any claim, action or proceedings made or brought against you, your correspondents or agents, as also against any liability or loss incurred or suffered by you, your correspondents or agents by reason of your having established the Credit pursuant to my/our application or otherwise however in the premises.
6. If/We fail to make due payment to ICICI Bank of a sight bill on its presentation or a usance bill on the date of its maturity, which is drawn or purported to be drawn under the credit and expressed to be paid in the foreign currency, then you shall be at liberty without prejudice to ICICI Bank’s rights hereunder, to crystallize my/our liability on the foreign currency bill by converting the foreign currency amount into Indian rupees on the 5th Day after the date of receipt of Documents by you under the credit in case of sight bill that remains unpaid or on the date of maturity in the case of a usance bill whereupon I/We shall be liable to pay to you the Indian Rupee equivalent of such foreign currency amount as calculated at the rate of exchange, together with interest as applicable as per ICICI Bank rules with quarterly rests, or at such other rests as may be notified by you from time to time, until payment or realization, and all costs, charges and expenses payable by me/us hereunder.
7. The rate of Exchange applicable to such conversion of the foreign currency amount into Indian rupees shall be:
   
   
   1. ICICI Bank’s applicable bill selling rate prevailing on the date falling on the 5th day in the case of sight bill or on the date of maturity in the case of a usance bill or
   2. The forward exchange contract rate in case a forward exchange contract has been booked by me/us with ICICI Bank.
       
8. The date of receipt of documents by ICICI Bank under the credit as registered in ICICI Bank’s record shall be conclusive and binding on me/us.
9. I/We confirm that crystallization of my/our liability on the foreign currency bill by you and the charging/payment of interest shall not be deemed to create any right to keep any unpaid bill when due.
10. I/We further agree that ICICI Bank shall have a pledge upon all goods and documents of title of goods and other documents covered under the credit which may have been already delivered or shall be hereafter delivered into ICICI Bank’s possession or into the possession of ICICI Bank’s agents by me/us or by any person, firm or company on my/our behalf's a result of ICICI Bank opening the Credit or in connection with the transaction hereunder. The said goods and the documents shall be deemed to be delivered in pursuance of my/our agreement to pledge them to ICICI Bank as security for all payments which may be made by ICICI Bank or its correspondents or its agents under the credit of my/our account as also for any liability whatsoever incurred or which may be hereafter incurred by ICICI Bank or its correspondents or agents as a result of opening of this credit, together with interest, costs, charges and expenses as herein above mentioned.
11. In the event of my/our committing a default in making due payment of any bill drawn or purported to be drawn under the Credit or in making reimbursement on demand of any payment made by ICICI Bank for my/our account in respect of any liability that may be suffered or incurred by ICICI Bank or its correspondents or agents under or in connection with the credit, that ICICI Bank shall be entitled without prejudice to any of its rights and without notice to me/us (which I/We hereby expressly waives), to sell the goods covered under the credit (the said “Goods”) whether before or after their arrival either by public auction or tender or by private contract and subject to such conditions as ICICI Bank may deem fit to impose, or otherwise dispose of or deal with the said goods or any part thereof and /or with the relative documents of title to the Goods in any manner whatsoever, without being bound to exercise any of these powers or liable for any loss in the exercise or non-exercise thereof. The new proceeds realized from sale of the said Goods or transfer or any document of title, remaining after deducting there from the costs and expenses of and incidental to such sale or transfer, shall be applied in or towards payment or satisfaction of the amount(s) due to ICICI Bank in respect of any payment or disbursement made by ICICI Bank under the Credit for my/our account, and interest the thereon and all costs charges and expenses as here in above mentioned. I/We agree to accept ICICI Bank's account of sale or realization as conclusive evidence both in and out of court as to the amount(s) realized and expenses incurred, and to pay forthwith any shortfall or deficiency remaining after such application. I/We further agree that ICICI Bank shall not be liable to me/us for any loss which may occur pending sale or disposal of the gods and/or document of title of Goods, whether by reason of theft, damage, deterioration to decay of the Goods or depreciation in the value thereof otherwise whatsoever be the cause.
12. I/We further agree to keep the said goods further insured from the time of expiry of insurance cover under the initial policy or policies or insurance, against all risks which are normally covered for goods of the nature purchased under the Credit as also against such other risk(s) as may be required by ICICI Bank, and in the event of my/our failing to do so, ICICI Bank shall be at liberty to insure the said goods at my/our cost and expenses without prejudice to ICICI Bank’s rights hereunder. Until all its dues in respect of the credit are paid in full, I/We agree to pay to ICICI Bank forthwith all funds, if received by me/us under any policy or policies of insurance moneys, I/We undertake to hold the same in trust for ICICI Bank.
13. I/We further agree and undertake to sign, execute and deliver to ICICI Bank from time to time on demand made by ICICI Bank, such further or other deeds, documents and writings and do all such acts, matters and things as may be required by ICICI Bank for better perfecting its title to the said goods and the documents covered under the credit and/or to render the same readily saleable or transferable by ICICI Bank to any purchaser(s) at all time.
14. It is understood that the transmission of all instructions and communications under the above Credit and the shipping of documents and goods thereunder is entirely at my/our risk. ICICI Bank and its correspondents or agents shall not be responsible for any error or delay in such transmission or loss or delay in delivery of the documents or the goods nor shall ICICI Bank or its correspondents or agents be liable in any respect beyond ensuring that the bill(s) drawn under the Credit and the relative documents covered there under purport to comply with the terms and conditions of the Credit.
15. I/We have made adequate arrangement for retiring the bills under the Credit and do not contemplate to seek any financial assistance from ICICI Bank for the purpose. I/We agree to the negotiations of the documents drawn under the Credit being confined to ICICI Bank’s branches or agencies or to any bank acceptable to ICICI Bank. This application shall deemed to have been accepted and the credit deemed to have been established advice thereof has been sent to the beneficiary.
16. I/We agree and confirm that this credit may be amended and/or modified by ICICI Bank in its absolute discretion, including for an increased limit, on our giving ICICI Bank written instructions for the same and in such event, such amendment/modification will be deemed to form part of this credit applications and will be governed by the terms hereof and I/We agree, covenant, record and confirm that I/We shall be bound by the same as if such amendment/modification including the increased limit had or originally constituted the term of this Credit.
     

4. RIGHT TO ALTER THE TERMS

ICICI Bank reserves the right to add, amend, modify or revise in whole or in part any of the Terms, and will make best efforts to provide appropriate notice to the Borrower. Any addition, suspension, revision, amendment, cancellation or suspension of the any of the Terms as notified on the website may be made by ICICI Bank, by causing a notice of the same to be posted on the website. Continued use of the Credit after such notice will constitute acknowledgment and acceptance of such amendment.
 

5. FORCE MAJEURE

ICICI Bank's obligations contained herein (if any) will be subject to any occurrence resulting in prevention from or delay or interruption in performing its obligations if such prevention, delay or interruption is due to force majeure event, [which would include any event beyond the reasonable control of ICICI Bank, including, without limitation, unavailability of any communication system, sabotage, fire, flood, explosion, acts of God, civil commotion, strikes or industrial action of any kind riots, insurrection, war or acts of government, changes in legislation and other allied acts of regulatory nature] then ICICI Bank shall not be deemed to be in default so long as any such cause or the effect thereof persists (provided that this shall not prevent the accrual of interest on any outstanding amount which would have been payable but for this provision) and during a reasonable period thereafter within any such obligations capable of being fulfilled. ICICI Bank shall not be liable for any action or claim, from any party, arising out of its inability to perform the obligations for the reasons stated herein.

6. These Terms shall be binding upon me/us, my/our heirs, executors and administrators/ successors and shall ensure to the benefit of and be enforceable by ICICI Bank, its successors, transferees and assigns.