The SBLC and Confirmation Forms reflect the agreed Terms and Conditions between the parties and are incorporated into this Agreement. It is agreed that the will cause Issuer and Confirmer to issue an SBLC, properly completed, as set forth in the Appendices to this Agreement ("SBLC and/or Confirmation Forms"), namely Appendix A together with its Annexes. The FMS Partner is responsible for notifying DSCA in writing if and when it wishes to terminate its Agreement with an Issuer and/or Confirmer. No fees can be capitalized or subsumed into the amount payable under the SBLC or Confirmation documents. The is responsible for paying to the Issuer and Confirmer any/all fees associated with the SBLC or Confirmation. The Issuer, Confirmer, and Advising Bank are not parties to this Agreement and have no rights under this Agreement.įMS Partner. It is agreed that will cause the SBLC and Confirmation to be advised to DSCA through, , and SWIFT Address: It is agreed in the Confirmation of the SBLC by the Confirmer that it will pay DSCA, as beneficiary, upon presentation to the Confirmer of a complying demand for payment under the SBLC, including if the Issuer fails to pay a complying presentation to the Issuer.Īdvising Bank. The SBLC specifies that the is obligated to pay DSCA, as beneficiary, upon presentation to the Issuer of a complying demand for payment under the SBLC, including if the Confirmer fails to pay a complying presentation to the Confirmer.Ĭonfirming Bank. Under no circumstances will articles delivered or services performed under the FMSP be used as collateral for securing arrangements associated with the SBLC. Under separate agreement, the issuing bank,, and the will negotiate fees associated with the SBLC as well as any other underlying transactions required. CFM will serve as USG contact for all SBLC related inquiries and as overall coordinator for the SBLC program. The CFO provides policy guidance and general supervision to the Business Deputy for Country Financial Management regarding administration of the SBLC program.īusiness Deputy for Country Financial Management (CFM). The DSCA Director has overall responsibility for ensuring the successful implementation, execution and management of the SLBC program.Ĭhief Financial Officer (CFO). In addition, DSCA is the FMS Trust Fund manager.ĭirector. DSCA is responsible for implementing all aspects of U.S. In addition, the SBLC contains an irrevocable consent to the exclusive jurisdiction of the Federal courts located in the County and State of New York with respect to any dispute arising under the SBLC.Ī) Defense Security Cooperation Agency DSCA is the beneficiary of the SBLC, on behalf of the USG. 590, unless otherwise expressly stated in the SBLC, and shall be governed by law of the State of New York and applicable U.S. The SBLC is subject to the International Standby Practices ("ISP 98"), International Chamber of Commerce Publication No. If and when DSCA makes a demand for payment under the SBLC, the payment instructions shall direct payment, directly or indirectly, to the FMS Trust Fund account for the. The SBLC is to cover all implemented FMS cases for which termination liability applies (i.e., under the authority of Section 22, Arms Export Control Act). Other financial obligations owed to the United States Government ("USG") by the FMS Partner are not covered by this arrangement. Instead of T/L prepayments being deposited into the Federal Reserve Bank ("FRB") account or the FMS Trust Fund account for the FMS Partner, payment of an equivalent amount is effectively guaranteed under the SBLC. The SBLC is to be furnished to DSCA in lieu of termination liability ("T/L") prepayments by the FMS Partner for its FMSP. This Agreement documents terms and conditions associated with the confirmed Standby Letter of Credit ("SBLC") that is obligated to provide to DSCA. This Memorandum Of Agreement ("Agreement") Between The Ministry of Defense And The Defense Security Cooperation Agency For Terms And Conditions For Standby Letter Of Credit Supporting Foreign Military Sales ("FMS") pertains to the Foreign Military Sales Program ("FMSP") between the United States ("U.S.") Defense Security Cooperation Agency ("DSCA") acting pursuant to Section 22 of the Arms Export Control Act, and the Ministry of Defense of (hereinafter ""). TERMS AND CONDITIONS FOR STANDBY LETTER OF CREDIT SUPPORTING FOREIGN MILITARY SALES THE DEFENSE SECURITY COOPERATION AGENCY FOR
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