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1. Parties: Details of the financial institution (Discounter) and the beneficiary (Client) entering into the agreement
2. Background: Context of the LC discounting arrangement and the underlying trade transaction
3. Definitions: Definitions of key terms used in the agreement including LC-specific terminology
4. Discounting Facility: Core terms of the discounting facility including limit, tenure, and pricing
5. Conditions Precedent: Prerequisites that must be satisfied before the discounting facility becomes effective
6. Discounting Process: Detailed procedure for submission and processing of LCs for discounting
7. Representations and Warranties: Standard and LC-specific representations and warranties by the Client
8. Client's Covenants: Ongoing obligations of the Client during the facility period
9. Events of Default: Circumstances constituting default and consequent rights of the Discounter
10. Payment Terms: Terms regarding discounting rate, fees, charges and payment mechanics
11. Recourse and Security: Terms regarding the Discounter's recourse rights and basic security provisions
12. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction clauses
1. Shariah Compliance: Required when the facility needs to be Islamic banking compliant
2. Additional Security Arrangements: Used when specific additional security or collateral is required
3. Group Company Guarantees: Include when parent company or group company guarantees are required
4. Foreign Exchange Provisions: Required when LC and discounting currencies are different
5. Tax Provisions: Detailed tax clauses required for cross-border transactions
6. Insurance Requirements: Specific insurance requirements for high-value or high-risk transactions
7. Assignment Provisions: Required when assignment of LC proceeds to third parties is permitted
1. Schedule 1 - Facility Terms: Detailed commercial terms including facility limit, tenure, pricing
2. Schedule 2 - Conditions Precedent Documents: List of required documents to be provided before facility activation
3. Schedule 3 - Form of Discounting Request: Standard format for submitting LC discounting requests
4. Schedule 4 - Fees and Charges: Detailed breakdown of all applicable fees and charges
5. Schedule 5 - Security Documents: List and forms of required security documents
6. Appendix A - LC Documentation Requirements: Checklist of required LC and supporting trade documents
7. Appendix B - Compliance Requirements: Malaysian regulatory compliance requirements and UCP 600 provisions
Banking and Financial Services
International Trade
Manufacturing
Export-Import
Commodities Trading
Retail
Agriculture
Technology and Electronics
Automotive
Textiles and Garments
Legal
Finance
Treasury
Trade Operations
Risk Management
Compliance
International Banking
Credit Administration
Documentary Credits
Transaction Banking
Trade Finance Manager
Chief Financial Officer
Treasury Manager
Finance Director
Credit Risk Officer
Trade Operations Manager
Compliance Officer
Legal Counsel
Banking Relationship Manager
Export Finance Manager
Documentary Credits Specialist
International Trade Specialist
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