We and our foreign partner signed a Investment Finance Agreement, our partner will make a wire transfer for total investment amount from their Bank to our local Bank to invest in the feasible projects in our countries. They require our receiving Bank to issue a BCL in which we have to commit to issue BG-458 then we will have to issue BG-458 and send to their Bank through Swift Bank to Bank, we have been working with many Banks but most of them cannot do it. Please let me know about BG-458 and its nature, is it risky to issue it?

Thank you.

 

 

 

Quoting from [autumn_200438]:



We and a foreign partner signed a Investment  Agreement,  for a projects in our countries.  We ,have to commit to issue BCL and  BG-458and send to their Bank through Swift Bank to Bank,  is it risky t?

      Dear Autumn ,



      # 1.  Here are the refer all  [quoted from RANGER]  read 


 http://resources.alibaba.com/topic/191089/LC_and_BANK_GUARANTEE_COMPARED_.htm


               - BG-458 is a Demand Guarantee.

               - ISP 98 (International Standby Practices) is for Standby Letters of credit

               - URC 522 abut Documentary Collections,

               - URR 525 about Bank to Bank payment procedures.



      # 2.   The Bank Guarantee,  that should be provided by your receiving bank/local bank


               after the Bank Commitment Letter as the Confirmation  that your bank will pledge


               a counter bank guarantee in full amount and fully liability to cover You/your projects


               as  a security-bond. (Promissory note Bank)  a degree as like Bank Certificate



               Since you do not have cash deposit& asset  that equal with this. For sure your bank


               will not do this, it is as the same as to give you a  "Credit - Loans"



      # 3.   Sending via SWIFT Bank to bank, by this operation it can not be canceled by any


               reason/condition. As this method is the most instant and confirm in transferring


               money or any payment issues.



                No matter what is your contract/transaction are as the reason of the BG


                Demanding. Once you (somehow) break (just) one among their ambiguous/tricky 


                clauses in their terms in the agreement (TOA ),  you and your bank will get loss,



                The Hints are on their  TOA  which actually only a DISCLAIMER .as a trap.

Quoting from [autumn_200438]:

We and our foreign partner signed a Investment Finance Agreement, our partner will make a wire transfer for total investment amount from their Bank to our local Bank to invest in the feasible projects in our countries. They require our receiving Bank to issue a BCL in which we have to commit to issue BG-458 then we will have to issue BG-458 and send to their Bank through Swift Bank to Bank, we have been working with many Banks but most of them cannot do it. Please let me know about BG-458 and its nature, is it risky to issue it?

Thank you.

 

 

 

The long and short of it is that this is extremely risky if you don't know how they work.  You really need to check ICC publication 458 on Demand Guarantees or User's Handbook to the URDG - ICC Publication No: 631

Ranger

 

Quoting from [autumn_200438]:

They require our receiving Bank to issue a BCL in which we have to commit to issue BG-458 then and send to their Bank through Swift Bank to Bank,

about BG-458 and its nature, is it risky to issue it?

      Thank you Mr Ranger,

      Those are the "accurate" resources ones,  will do the correction accordingly.

      Hopefully Autumn can see the Red-Sign in this navigation for this traffic route.

      and not playing such Hi-Tech soft ware in " Intl - Financing - role"

      Matter of fact, not him that will get the HB- candy-cake "LOANS"  .

      But those Hi-End Scam could get the "Candy Cake" .of that BG via Swift !!!

      Autumn,

      Close the file and erase it, such loans -sources that you are talking about is

      for level-class of  G2G diplomacy, e.g.: World wide Foundation,  UN (UNESCO),

      USAID,  EEC ,  IMF,  etc.... that Unlikely  via  Individual/Personal approaches.

      end + stop.

     

Thank you Mr Ranger,


      Those are the "accurate" resources ones,  will do the correction accordingly.


      Hopefully Autumn can see the Red-Sign in this navigation for this traffic route.


      and not playing such Hi-Tech soft ware in " Intl - Financing - role"


      Matter of fact, not him that will get the HB- candy-cake "LOANS"  .


      But those Hi-End Scam could get the "Candy Cake" .of that BG via Swift !!!


      Autumn,


      Close the file and erase it, such loans -sources that you are talking about is


      for level-class of  G2G diplomacy, e.g.: World wide Foundation,  UN (UNESCO),


      USAID,  EEC ,  IMF,  etc.... that Unlikely  via  Individual/Personal approaches.


      end + stop. 

WOW....what a hi fi blast from Oneuni. I broke all my teeth trying to understand its meaning.

Never heard of so many unfathomable terms in such quick succession. Keep it up, and I will end up in a loony bin soon enough!

Quoting from [autumn_200438]:

We and our foreign partner signed a Investment Finance Agreement, our partner will make a wire transfer for total investment amount from their Bank to our local Bank to invest in the feasible projects in our countries. They require our receiving Bank to issue a BCL in which we have to commit to issue BG-458 then we will have to issue BG-458 and send to their Bank through Swift Bank to Bank, we have been working with many Banks but most of them cannot do it. Please let me know about BG-458 and its nature, is it risky to issue it?

Thank you.

 [autumn_200438]:

BG, I understand is Bank Guarantee- To be given to Bank. Bank gives assurance of the money to supplier. Depending up on your credit worthiness they give you BG by charging commissions( vary from bank to bank.BG458( 458 may be a number assigned by the your bank Now you will have to establish your credit. There is no risk if your bank give you BG on charging commission to you. You have to be sure of the products you are buying.   

 

 

 Mr  Ranger ...Mr  Catalyst  .... Please .. please..

 

 In my respect to The Seniority, 

 It still  far then enough  for me to learn and listen  more from You...

 

 Thanks  for  the  advises.  and  keep on air. 

 

 

Reply to [Oneuni]:

All in a lighter vein. No hard feelings.