Steps to implement the letters of guarantee.. Based on the trade agreement between the bank and the beneficiary

Steps are to issue letters of guarantee for the stages of basic andessential similar between the banks and that differed in somefractions. These are the basic steps are as follows:

1 - Based on the trade agreement between him and the beneficiary,make the client to request his bank to issue the letter of guarantee to the beneficiary. After obtaining the approval of this request the bank to the customer must sign the application form and provide what may be required to cover conditions such as cash or any other physical collateral is required.2 - The bank deduct the value specified for the insurance money incase of its requirement in addition to the expenses and commissionassessments, and that the client's account of ordering the issuance of the letter of guarantee.

3 - issue a bank officer in charge the letter of guarantee, and deliverthe original to the client usually by hand or send it directly to the beneficiary in the case of the client's request that a book written, anddistribute a copy of the letter to the client asked to issue the letter to complete its files and follow-up, and send another copy to the General Administration, to monitor in addition to Save another copyin a special file.

4 - in the case of the implementation of the client demanded the letter of guarantee to all its obligations to the beneficiary, and the end of the period without a demand letter from the bank to pay the beneficiary, it expires the letter of guarantee, but the bank is keen to recover the original copy of the letter to lock the file. It is the practiceof some banks to add the requirement relates to the ongoing responsibility of the client to the bank to recover out of the speech orto agree to abolish the beneficiary regardless of the expiry of its term. In the case of a breach of customer obligations, it continues toimplement the letter of guarantee by the subsequent steps.

5 - The beneficiary submits a request to the bank to pay the amountsincluded in the letter of guarantee, whether it be accompanied bydocuments with or without the letter of guarantee by the nature of the source.

6 - pays the issuing bank letter of guarantee for the security depositimmediately, not waiting for him to pay the amount from the client,because the commitment includes a pledge to request immediate payment once the beneficiary.

7 - The client demanded the letter of guarantee payment of the amount paid by the bank to discharge.