Terms and conditions governing Trade Finance drawdown application on OCBC Velocity
Trade Finance Product and Services
- Issuance of Letter of Credit & Letter of Credit-i
- Amendment of Irrevocable Letter of Credit & Irrevocable Letter of Credit-i
- Application of Trust Receipt (TR) / Trust Receipt-i (TR-i)
- Application of Banker's Acceptance (BA) / Accepted Bill - Islamic (AB-i)
- Application of Invoice Financing (IF) / Foreign Currency Trade Finance (FCTF)
- Issuance and Amendment of Bank Guarantee (BG) / Bank Guarantee-i (BG-i)
- Issuance and Amendment of Standby Letter of Credit (SBLC) & Standby Letter of Credit-i (SBLC-i)
- Application of Invoice Financing - Islamic (IF-i)
- Full Transaction Banking Terms and Conditions
Issuance of Letter of Credit & Letter of Credit-i
Amendment of Irrevocable Letter of Credit & Irrevocable Letter of Credit-i
Application of Trust Receipt (TR) / Trust Receipt-i (TR-i)
Application of Banker's Acceptance (BA) / Accepted Bill - Islamic (AB-i)
Application of Invoice Financing (IF) / Foreign Currency Trade Finance (FCTF)
Issuance and Amendment of Bank Guarantee (BG) / Bank Guarantee-i (BG-i)
Issuance and Amendment of Standby Letter of Credit (SBLC) & Standby Letter of Credit-i (SBLC-i)
Application of Invoice Financing - Islamic (IF-i)
Full Transaction Banking Terms and Conditions
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Issuance of Letter of Credit & Letter of Credit-i
1. I/We authorise OCBC Bank (Malaysia) Berhad/ OCBC Al-Amin Bank Berhad ("the Bank") to accept or pay for my/our account the draft(s) and/or documents purporting to be drawn under and tendered or negotiated pursuant to this Letter of Credit (“Credit”) and to pay all sums which appear or purport to be claimed or demanded or which the Bank is liable to pay in accordance with or pursuant to this Credit, without any reference to or further authority from me/us and without inquiry into the justification for it or the validity, genuineness or accuracy of any statement or certificate received by the Bank with respect to or under this Credit and despite any contestation on my/our part. I/We agree that any such draft(s) and/or documents or claims or demands for payment of any such sums shall be binding on me/us and shall as between the Bank and me/us, be accepted by me/us as conclusive evidence that the Bank was liable to pay or comply with them.
2. Where the Bank agrees to accept a delivery order/delivery note/cargo receipt or other similar document signed by me/us or my/our nominated agent/representative acknowledging receipt of the goods being in good order and condition whether for the account of the Bank or otherwise, I/we hereby waive all irregularities, discrepancies, inconsistencies, omissions, insufficiencies, missing documents and delays in the documents received by the Bank or tendered under this Credit including late presentation and expired Credit. I/We also undertake to accept that all such documents correspond with this Credit and I/we will accept any draft(s) and/or documents drawn on me/us and the Bank is irrevocably authorised to pay on presentation or maturity, as the case may be, the amount or amounts of the said draft(s) and/or documents together with all charges if any and to debit my/our account(s) accordingly.
3. In consideration of the Bank in its discretion issuing from time to time Letter of Credit/ Letter of Credit-i and all amendment thereto substantially in accordance with the information provided by us in this application for this purpose, I/we agree that, notwithstanding anything to the contrary in the Uniform Custom and Practice for Documentary Credits, ICC Publication Number 600 or any later subsequent revision or restatement thereof adopted by the ICC and in use by the Bank, where I/we request the Bank to issue a usance Letter of Credit/ Letter of Credit-i, the Bank is authorized and requested to prepay or purchase the draft/documents accepted by the Bank or a deferred payment undertaking incurred by the Bank.
4. I/We will bear and pay for all applicable taxes which are specified as inclusive in the fees and charges for any trade transactions and services.
5. This application is subjected to the Letter of Offer and OCBC/ OCBC Al-Amin Product Terms, including all supplements and amendments from time to time. The Letter of Offer shall prevail if there is any conflict between any applicable terms. -
Amendment of Irrevocable Letter of Credit & Irrevocable Letter of Credit-i
1. I/We, request the Bank to amend the Irrevocable Letter of Credit/ Irrevocable Letter of Credit-i for my/our account in accordance with the instructions. This amendment is subject to acceptance by beneficiary.2. Aside from the amendment instructions herein, all other terms and conditions of the original Letter of Credit/ Letter of Credit-i remain unchanged.3. This amendment would be governed by the version of the ICC Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce, Paris, France as indicated in the original Letter of Credit/ Letter of Credit-i. -
Application of Trust Receipt (TR) / Trust Receipt-i (TR-i)
1. I/We acknowledge and agree that I/we have not and will not obtain other financing for the invoice / documents for which I/we have applied for under the TR/TR-i financing, including leasing, hire purchase and factoring.
2. I/We undertake(s) and agree(s) to submit the original TR/TR-i draft to the Bank within 14 days from the date of the financing schedule issued by the Bank to us. The Bank reserves the right to suspend future online submission of similar transactions, as the Bank deems fit, whenever the required original draft(s) is/are not submitted to the Bank on a timely basis in accordance with this clause.
3. I/We shall indemnify the Bank and/or the Bank’s correspondents and agents on demand against all actions, claims, demands, costs, expenses or liabilities of whatever nature and losses whenever incurred for anything done or omitted in connection with or arising out of the Bank’s release of the documents (Documents) to me/us or otherwise in relation to the goods (Goods) subject to the TR/TR-i.
4. The Bank shall have no responsibility whatsoever for the correctness, validity or sufficiency of the Documents or for the existence, character, quality, quantity, condition, packing value or delivery of the Goods.
5. I/We irrevocably authorise the Bank to debit my/our account on/upon maturity of the TR/TR-i as per the instructions provided herein.
6. I/We irrevocably consent and authorise the Bank to disclose transaction data in relation to this Application and other relevant information or Personal Data that are required in connection with utilising the services of the Bank’s service providers for the purpose of sharing, processing, storing, or archiving, amongst others of data to verify/identify the authenticity of transaction data submitted for trade applications. I/We acknowledge that the Bank reserves the right to reject any transaction that is found to be already processed or carried out by another financial institution or service provider.
7. This Application is subjected to the Letter of Offer and OCBC/OCBC Al-Amin Product Terms, including all supplements and amendments from time to time. The Letter of Offer shall prevail if there is any conflict between any applicable terms. -
Application of Banker's Acceptance (BA) / Accepted Bills - Islamic (AB-i)
1. I/We acknowledge and agree that I/we have not and will not obtain other financing for the invoice / documents for which I/we have applied for under the BA/AB-i financing, including leasing, hire purchase and factoring.2. Where the BA/AB-i is to finance purchase of goods, the goods purchased are not intended to be fixed assets.3. By submitting an application for BA/ABI-i, I/We represents that the BA/AB-i is a genuine trade transaction in full compliance with Bank Negara Malaysia’s guidelines from time to time.4. I/We undertake(s) and agree(s) to submit the original BA/AB-i draft to the Bank within 14 days from the date of the financing schedule issued by the Bank to us. The Bank reserves the right to suspend future online submission of similar transactions, as the Bank deems fit, whenever the required original draft(s) is/are not submitted to the Bank on a timely basis in accordance with this clause.5. I/We irrevocably agree that you may remit payments in any available payment gateway as you deem fit, and I/we shall be responsible for any applicable charges in respect thereof.6. I/We irrevocably consent and authorise the Bank to disclose transaction data in relation to this Application and other relevant information or Personal Data that are required in connection with utilising the services of the Bank’s service providers for the purpose of sharing, processing, storing, or archiving, amongst others of data to verify/identify the authenticity of transaction data submitted for trade applications. I/We acknowledge that the Bank reserves the right to reject any transaction that is found to be already processed or carried out by another financial institution or service provider.7. This Application is subject to the Letter of Offer and OCBC/OCBC Al-Amin Product Terms, including all supplements and amendments from time to time. The Letter of Offer shall prevail if there is a conflict between the terms and conditions of this Application, the Letter of Offer and OCBC/OCBC Al-Amin Product Terms. -
Application of Invoice Financing (IF) / Foreign Currency Trade Finance (FCTF) / OCBC CashNow (CN) on OCBC Velocity
1. We acknowledge and agree that I/we have not and will not obtain other financing for the invoice / documents for which I/we have applied for under the IF/FCTF/CN, including leasing, hire purchase and factoring.
2. This application for IF/FCTF/CN shall arise from:-
i. genuine trade transactions with actual physical flow and transfer of ownership to the goods/merchandises
or in respect of the goods and/ or services or utilities relating to the production of the goods/merchandise
or any duty payable in respect thereof; or
ii. any provision of services relating to the above genuine trade transaction.
3. I/We agree(s) in case of import/purchase transactions, if payment to the supplier under the above-referred invoice(s) submitted to the Bank have not been made, the funds derived from IF/FCTF will be used to pay off the supplier and any shortfalls will be debited from my/our account stated in the application form.
4. I/We if any, will be charged for any early settlement of the financing prior to maturity subjected to the Bank’s consent and break funding cost (as determined the Bank).
5. For CN, notwithstanding the information that is required under this application, I/we agree to furnish other relevant information that may be requested by the Bank to facilitate the transaction. I/We also acknowledge and consent for the CN application to be routed to the Bank using the IF/FCTF module pending completion of a CN application module being made available. I/We agree to indicate the required tenor for CN loan and for the Bank to adjust the outstanding payable to fall due on my/our selected preferred settlement date.
6. I/We agree(s) application of FCTF/CN shall subject to the availability of currency funding and cut-off time.
7. I/We irrevocably agree that you may remit payments in any available payment gateway as you deem fit, and I/we shall be responsible for any applicable charges in respect thereof.
8. I/We irrevocably consent and authorise the Bank to disclose transaction data in relation to this Application and other relevant information or Personal Data that are required in connection with utilising the services of the Bank’s service providers for the purpose of sharing, processing, storing, or archiving, amongst others of data to verify/identify the authenticity of transaction data submitted for trade applications. I/We acknowledge that the Bank reserves the right to reject any transaction that is found to be already processed or carried out by another financial institution or service provider.
9. This Application is subject to the Letter of Offer and OCBC Product Terms, including all supplements and amendments from time to time. The Letter of Offer shall prevail if there is any conflict between the terms and conditions of this Application, the Letter of Offer and OCBC Product Terms. -
Issuance and Amendment of Bank Guarantee (BG) / Bank Guarantee-i (BG-i)
1. I/We acknowledge and agree that cash deposits or fixed deposits pledged to the Bank to support this application will only be released to me/us upon receipt by the Bank a written discharge letter from the Beneficiary or after the expiry date or claim period of this Bank Guarantee (BG)/ Bank Guarantee (BG)-i;2. You are hereby authorised, whether before or after you have made payment under the BG/ BG-i:
a. to earmark and withhold from my/our account(s) (including any fixed deposit account(s) with your Bank
("Account(s)") or from any funds held by you to which I/we may be entitled, a sum equivalent to your
liability or contingent liability under the BG/ BG-i;b. to debit the Account(s) at such time(s) as you deem fit for:
(i) the commission and charges payable for the issuance of the BG/ BG-i; and
(ii) the amount of any payments you may make or be required to make in respect of the BG/ BG-i together
with such profit/interest /compensation charges, and (if any Account(s) are overdrawn due to the
debiting) include such charges as may be applicable to overdrafts/excesses charges.3. In the event I/we apply to backdate the Effective Date of the BG/ BG-I, I/We hereby confirm that there are no liabilities outstanding during the back-dated period. If a claim is submitted for the back-dated period, I/we irrevocably authorise the Bank to set-off the claim from the earmarked Account(s) in accordance to the terms and conditions stated in this application (where applicable).4. Where BG/BG-I is to be issued on a pre-printed format provided by the Beneficiary I/We will deliver the pre-printed format to the Bank without delay.5. Where the Bank has vetted and agreed to issue a non-standard format BG/BG-i, I/We will deliver our acceptance of the BG/BG-i without delay.6. Where BG/BG-i is to be stamped, I/We authorise the Bank to debit my/our account to pay the applicable stamp duties.7. In the event of amendment, I/we request the Bank to amend the BG/ BG-i for my/our account in accordance with the instructions. This amendment is subject to acceptance by beneficiary. Aside from the amendment instruction herein, all other terms and conditions of the original BG/ BG-i remain unchanged.8. This application is subjected to the Letter of Offer and OCBC/ OCBC Al-Amin Product Terms, including all supplements and amendments from time to time. The Letter of Offer shall prevail if there is any conflict between any applicable terms. -
Issuance and Amendment of Standby Letter of Credit (SBLC) & Standby Letter of Credit-i (SBLC-i)
1. I/We acknowledge and agree that cash deposits or fixed deposits pledged to the Bank to support this application will only be released to me/us upon receipt by the Bank a written discharge letter from the Beneficiary or after the expiry date of this Standby Letter of Credit (SBLC)/ Standby Letter of Credit-i (SBLC-i);
2. You are hereby authorised, whether before or after you have made payment under the SBLC/ SBLC-i:
a. to earmark and withhold from my/our account(s) (including any fixed deposit account(s) with your Bank
("Account(s)") or from any funds held by you to which I/we may be entitled, a sum equivalent to your
liability or contingent liability under the SBLC/ SBLC-i;
b. to debit the Account(s) at such time(s) as you deem fit for:-
(i) the commission and charges payable for the issuance of the SBLC/ SBLC-i; and
(ii) the amount of any payments you may make or be required to make in respect of
the SBLC/ SBLC-i together with such profit/interest /compensation charges, and
(if any Account(s) are overdrawn due to the debiting) include such charges as may be
applicable overdrafts/excesses charges.
3. In the event I/we apply to backdate the Effective Date of the SBLC/ SBLC-I, I/We hereby confirmed that there are no liabilities outstanding during the back-dated period. If a claim is submitted for the back-dated period, I/we irrevocably authorise the Bank to set-off the claim from the earmarked Account(s) in accordance to the terms and conditions stated in this application (where applicable).
4. SBLC/ SBLC-i will be governed by the ''International Standby Practices ISP 98'' (ICC Publication 1998) (''the Publication'') and, for all issues not covered by the Publication, the laws of Malaysia shall apply. In case of conflict, the Publication shall prevail. The courts of Malaysia shall have non-exclusive jurisdiction over any dispute arising from this SBLC/ SBLC-i. Unless you otherwise agree, the SBLC/ SBLC-i will be issued subjected to the latest version of the Publication which is effective on the date of its issuance. That the undertakings and terms herein shall be construed in accordance with the laws of Malaysia.
5. In the event of amendment, I/we request the Bank to amend the SBLC/ SBLC -i for my/our account in accordance with the instructions. This amendment is subject to acceptance by beneficiary. Aside from the amendment instruction herein, all other terms and conditions of the original SBLC/ SBLC -i remain unchanged.
6. This application is subjected to the Letter of Offer and OCBC/ OCBC Al-Amin Product Terms, including all supplements and amendments from time to time. The Letter of Offer shall prevail if there is any conflict between any applicable terms. -
Application of Invoice Financing - Islamic (IF-i)
1. I/We acknowledge and agree that I/we have not and will not obtain other financing for the invoice/documents for which I/we have applied for under the IF-i financing, including leasing, hire purchase and factoring.
2. This application for IF-i shall arise from:-
i. genuine trade transactions with actual physical flow and transfer of ownership to the goods/ merchandises
or in respect of the goods and/ or services or utilities relating to the production of the goods/merchandise
or any duty payable in respect thereof; or
ii. any provision of services relating to the above genuine trade transaction.
3. I/ We agree(s) in case of import/purchase transactions, if the payment to the supplier under the above-referred invoice(s) submitted to the Bank have not been made, the funds derived from IF-i will be used to pay off the supplier and any shortfalls will be debited from my/our account stated in the application form.
4. I/We if any, will be charged for any early settlement of the financing prior to maturity subjected to the Bank’s consent and break funding cost (as determined by the Bank).
5. I/ We appoints the Bank as Wakil (agent) as set out in OCBC Al-Amin Product Terms to buy and sell asset under Commodity Murabahah/Tawarruq The Bank may appoint sub-agent(s) or delegate any function as deem fit at the Bank’s sole discretion.
6. I/We irrevocably agree that you may remit payments in any available payment gateway as you deem fit and I/we shall be responsible for any applicable charges in respect thereof.
7. I/We irrevocably consent and authorise the Bank to disclose transaction data in relation to this Application and other relevant information or Personal Data that are required in connection with utilising the services of the Bank’s service providers for the purpose of sharing, processing, storing, or archiving, amongst others of data to verify/identify the authenticity of transaction data submitted for trade applications. I/We acknowledge that the Bank reserves the right to reject any transaction that is found to be already processed or carried out by another financial institution or service provider.
8. This Application is subject to the Letter of Offer and OCBC Al-Amin Product Terms, including all supplements and amendments from time to time. The Letter of Offer shall prevail if there is any conflict between the terms and conditions between this Application, the Letter of Offer and OCBC Al-Amin Product Terms. -
Full Transaction Banking Terms and Conditions
The complete list of Transaction Banking Terms and Conditions can be viewed here.