LG / TEXT

Textform of Guarantees acceptable by

Gumhouria Bank

-         That the L/G'S whether Bid bond , and or Advanced payment and or Performance bond should include the following conditions.

-         Our counterguarantee in your favour is irrevocable and unconditional , payable renewable at your first simple demand notwithstanding any contestation on our part up to the aggregate amount of ___________ plus your commissions and charges claimed by you .

-         To indemnify you and hold you harmless against any claim liability , loss , damage or cost resulting from or arising out of your issuing or performing your letter of guarantee notwithstanding any objections , defence or litigation by our principal or any other party .

-         Any indication to the contract and its terms and conditions or invoices or any other documents is given merely as references and will not affect our liability towards you under said L/G .

-         We undertake to pay in your favour any amount claimed under above L/G at your first simple demand irrespective of any objection by any other party and that we undertake in case of delay of payment to pay you delay interest on the amount claimed according to the best prevailing rates in Libya .

-         Our counter L/G  is valid thirty days beyond expiry date of your L /G ( as mailing period ) .

-         Any taxes imposed in your country on letter  of  guarantees issued on our behalf will be borne by our bank (currently at the rate of 5 per mill flat the outcome of which is subject to a further 5 per mill as stamp duties ) .

-         We acknowledge that your L/G will be subject to the laws and regulations of Libya .

  NB        In case of advanced payment guarantees, they should be in force immediately upon issuance according to the Libyan law however , should there be any  kind of prior agreement between contractual parties which link the validity of L/G in  question to the contractor we will be able to satisfy that condition.

Commissions and charges

Our standard rates are currently 1.5 per mill per month, however  for huge amounts of guarantees rates can be negotiated .

Our commission is calculated as follows :

Bid Bond The commission is calculated on the whole period of   L/G provided its validity is less than one year .

 Advanced payment L / G  Our commission is calculated  every three months in advance provided the L /G validity exceeds one year , however , should the L/G validity is less than one year our commission will be calculated on the whole period .

Our commission is calculated ( 6 ) months in advance provided the L/G exceeds one year , however, should the L/G validity be less than one year our commission will be  calculated on the whole period.

STANDBY LC\TEXT

From : Correspondent Bank

To : Gumhouria Bank

Under our full responsibility and indemnity , you are kindly requested to advise the following wording of standby letter of credits adding your confirmation .

- This standby L/C is payable at Gumhouria bank counters against beneficiary's first simple demand in writing

- This standby L/C is also renewable/extendable upon beneflciary's simple demand

- Any reference in this standby L/C to text , codes , dates ………etc

relating to a contract , proforma invoice and/ or any other documents should not affect our liabilities towards you under our undertaking to pay its amount on your first simple demand according to standby L/C terms and conditions .

- This standby L/C is valid at … Gumhouria bank counter up to

 the expiry date   after which date and in absence of your instructions within its validity will be automatically considered as null and void even if the original documents are not returned to us

- Partial drawings are allowed upon your receipt of beneficiary's instructions.

- Bank to bank information :

We agree to pay all your commission and charges upon receipt of your claim in your account with the bank of your choice

- Also we confirm in case of delay of any settlement we undertake to pay you delay interest at the rate prevailing in your country .

In reimbursement :

We hereby undertake to cover you as per your instructions upon receipt of your authenticated message claim or in writing by crediting your account with the bank of your choice, notwithstanding any contestation , dispute , precautionary garnishee attachment order by the applicant or any other party and without recourse to any legal or judicial proceedings .

Please advise beneficiary adding your confirmation .

This telex / swift is to be treated as an operative instrument and no mail confirmation will follow .

This standby letter of credit is subject to the UCP  of the ICC Paris revision 2007 , publication No 600