STANDBY LETTER OF CREDIT

Download Standby is a type of letter of credit issued by Bancomer on behalf of customer to guarantee compliance with their payment obligations due t...

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We offer you the most widely-used product to guarantee compliance with your payment commitments.

Standby letter of credit (Stand by)

What is it? Standby is a type of letter of credit issued by Bancomer on behalf of customer to guarantee compliance with their payment obligations due to financial or commercial commitments with third parties (suppliers, financial entities, etc.). Types of standby letters of credit: • •

Commercial standby: Guarantees payment on account of sale of goods or rendering of

services

Financial standby: Guarantees payment of a loan

How does it work? GENERAL SCHEMA

4 Verifies that all terms of the credit correspond to agreement with principal

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Principal

Beneficiary Notifies (and, as the case may be, confirms) the credit

Applies for issuance of credit

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Issues the credit

BBVA Bancomer

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Correspondent bank

BBVA BANCOMER, S.A. INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO Banca de Empresas y Gobierno Av. Universidad 1200, Col. Xoco 03339, México, D.F.

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Why should you sign up? •

Security, by having an instrument that guarantees payment of obligations will only be made as per the conditions set forth by you



Tranquility, by having an instrument that will facilitate the closing of commercial or financial transactions at the beginning of your relationship with the counterpart



Service, by having specialized account managers to attend your business operations with the quality and efficiency you require



Multinational status, by using this instrument for your domestic or international operations



Certainty, by offering your supplier or creditor the same payment commitment by the bank



Comfort and modernity, as you may issue and amend standby letters of credit using Bancomer.com, from any computer connected to the Internet or through our unique service of specialized network for companies

Requirements •

Having or opening a Bancomer checking account



Having a credit line in effect and available



If you don’t have a credit line available, providing the funds in the relevant currency, charge made to your account



Signing an Apertura de Crédito Irrevocable para Cartas de Crédito Standby y Garantías Demandables (Bond) irrevocable credit for standby letters of credit and bonds agreement



Completing and signing the application for a Carta de Crédito Standby o Garantía (Bond) letter of credit or bond, Exhibit “A”



Replacing any documents that are not in effect or providing those which are not found in the customer file, such as short versions of powers of attorney, IDs, among others

BBVA BANCOMER, S.A. INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO Banca de Empresas y Gobierno Av. Universidad 1200, Col. Xoco 03339, México, D.F.

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