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The Nominated Bank In Letter of Credit agreement is a crucial document in international trade finance, specifically designed for use when a bank is designated to handle Letter of Credit transactions within Saudi Arabia's legal framework. This document becomes necessary when an Issuing Bank nominates another bank to act on its behalf in paying, negotiating, or undertaking deferred payment obligations under a Letter of Credit. The agreement must comply with Saudi Arabian banking regulations, including Saudi Arabian Monetary Authority (SAMA) guidelines, while also adhering to international banking practices such as the UCP 600. It typically includes detailed provisions for document examination, payment procedures, fee structures, and risk allocation, ensuring clarity in the nominated bank's role and responsibilities in facilitating international trade transactions.

1. Parties: Identifies the Nominated Bank, the Issuing Bank, and any other relevant parties involved in the Letter of Credit transaction

2. Background: Sets out the context of the nomination, including reference to the relevant Letter of Credit and the nomination request

3. Definitions: Defines key terms used throughout the agreement, including banking terms specific to Letters of Credit

4. Scope of Nomination: Details the specific role and authority granted to the Nominated Bank under the Letter of Credit

5. Rights and Obligations: Outlines the rights and responsibilities of the Nominated Bank in handling the Letter of Credit

6. Document Examination: Specifies procedures and standards for examining documents presented under the Letter of Credit

7. Payment Terms: Details the conditions and procedures for making payments under the Letter of Credit

8. Fees and Charges: Specifies all fees, commissions, and charges applicable to the nomination

9. Communications: Sets out methods and requirements for communications between parties

10. Liability and Indemnification: Defines the extent of the Nominated Bank's liability and indemnification provisions

11. Governing Law and Jurisdiction: Specifies Saudi Arabian law as governing law and defines jurisdiction for disputes