22.7 Initiate Islamic Outward Guarantee/Stand By LC - Instructions

This topic provides the systematic instructions to capture the Instructions details in the application.

This tab includes the expiry condition and extension applicable for the Outward Guarantee application.

  1. Specify the Instruction details.

    Figure 22-10 Initiate Outward Guarantee/Stand By LC - Instructions tab
    Description of initiate-outward-guarantee-stand-lc-instructions.png follows
    Description of the illustration initiate-outward-guarantee-stand-lc-instructions.png

    Note:

    The fields which are marked as Required are manadatory.

    For more information refer to the field description table below:

    Table 22-9 Initiate Islamic Outward Guarantee/Stand By LC - Instructions - Field Description

    Field Name Description
    Available With The option to select the details of Bank where credit would become available.

    The options are:

    • SWIFT Code
    • Name and Address

    This field is enabled only if Standby Letter of Credit option selected in the Form of Undertaking list.

    SWIFT Code Specify the SWIFT code of the advising bank, available in the application. Or

    Click the Lookup SWIFT Code link to search and select the link.

    The user can specify the SWIFT Code, City and Bank Name as search criteria.

    This field is enabled if the SWIFT Code option is selected in the CounterGuarantee Issuing Bank field.

    Bank Details The name and address details of the bank which issued the counter undertaking.

    This field is enabled if the Bank Address option selected in the Counter Guarantee Issuing Bank field.

    Confirmation Instructions The option to select the confirmation instructions for the requested confirmation party.

    The options are:

    • Confirm - The requested confirmation party is requested to confirm the credit
    • May Add - The requested confirmation party may add its confirmation to the credit
    • Without - No confirmation is requested
    Requested Confirmation Party Select the bank which is requested to add its confirmation or may add its confirmation.

    The options are:

    • Advising Bank
    • Advise Through Bank
    • Confirming Bank
    This field is enabled if the May Confirm or Confirm option is selected in the Confirmation Instruction list.

    Below SWIFT Code related fields appear if Others option selected in Requested Confirmation Party field.

    SWIFT Code Specify the SWIFT code of the confirming bank or Advise through Bank. Or

    Click the Lookup SWIFT Code link to search and select the link.

    The user can specify the SWIFT Code, City and Bank Name as search criteria.

    This field is enabled if the SWIFT Code option is selected in the Counter Guarantee Issuing Bank fields.

    Bank Details The name and address details of the bank which issued the counter undertaking.

    This field is enabled if the Bank Address option selected in the Counter Guarantee Issuing Bank field.

    Expiry Type Select the type of validity applicable to the Outward Guarantee.

    The options are:

    • Fixed
    • Conditional
    • Open
    Expiry Condition Specify the expiry condition for the Outward Guarantee.

    This field is enabled if Conditional option selected in the Expiry Type list

    Auto Renewal Select whether auto renewal of guarantee is required or not.

    This field is enabled if Open option selected in the Expiry Type list.

    Guarantee Expiry Date Select the date after which Outward Guarantee will expire.
    Automatic Extension Required Select whether automatic extension is required to the Outward Guarantee or not.

    The options are:

    • Yes
    • No

    This field does not appear for ‘Open’ Expiry Type.

    Automatic Extension Period Select the period after which automatic extension is given to the Outward Guarantee.

    The options are:

    • Days
    • One Year
    • Other

    Below Automatic Extension related fields appear, if Yes option is selected in the Automatic Extension Required field.

    Automatic Extension Details Specify the details of the automatic extension of the Outward Guarantee.

    This field is enabled to fill details only if the Other option is selected in the Automatic Extension Period list.

    And if Days option is selected the number of days can be entered.

    Automatic Extension Non-Extension Notification Displays the notification given for non-extension of automatic extension while creating Outward Guarantee.
    Automatic Extension Notification Period Specify the period after which notification given for non-extension of automatic extension while creating Select Guarantee.
    Automatic Extension Final Expiry Date Select the date after which validity of automatic extension to the Outward Guarantee expires.
    Liability Schedule Required Select the option for the user to select, whether liability schedule is required to the Outward Guarantee or not.

    The options are:

    • Yes
    • No

    Below Liability Schedule related fields appear, if Yes option is selected in the Liability Schedule Required field.

    Liability Change Basis Select the option for the user to select the liability change basis i.e. whether it would be triggered on an event or in a time bound manner.

    The options are:

    • Event Based
    • Time Bound
    Additional Details Specify the additional details.
    Unit Select the units, based on which the schedule, retention dates should be calculated.

    The options are:

    • Yearly
    • Half Yearly
    • Quarterly
    Monthly
    Frequency Specify the frequency based on which the schedule, retention dates would be calculated.
    Amount Select the amount of each schedule.

    The options are:

    • In Percentage
    • In value.
    Amount Specify the amount for each schedule.

    This field is enabled only if In Value option is selected in the Amount field.

    Percentage Specify the percentage for each schedule.

    This field is enabled only if Percentage option is selected in the Amount field.

    Liability Type Select the liability type of the scheduler.

    The options are:

    • Increase: User can select this option, if he wants to increase the undertaking amount on the fixed scheduled dates and amount.
    • Decrease: User can select this option, if he wants to decrease the undertaking amount on the fixed scheduled dates and amount.
    • Both: User can customize as per his requirements and would not be able to default using the scheduler.
    Serial Displays the serial number of the schedule record.

    This field appears if the user clicks Get Schedule button after entering the details in Unit, Frequency, Amount, Percentage and Liability Type fields.

    Schedule Date Displays the serial number of the schedule record.

    This field appears if the user clicks Get Schedule button after entering the details in Unit, Frequency, Amount, Percentage and Liability Type fields.

    Amount Displays the amount of the schedule record.

    This field appears if the user clicks Get Schedule button after entering the details in Unit, Frequency, Amount, Percentage and Liability Type fields.

    Percentage Displays the percentage of the schedule record.

    This field appears if the user clicks Get Schedule button after entering the details in Unit, Frequency, Amount, Percentage and Liability Type fields.

    Liability Type Select the liability type of the scheduler.

    This field appears if the user clicks Get Schedule button after entering the details in Unit, Frequency, Amount, Percentage and Liability Type fields.

    Sender to Receiver Information Specify the additional information for the receiver.
    Special Instructions Specify the instruction which is provided by user to the bank to be taken care of while creating Guarantee and for his information.
  2. In the Available With field, if you select SWIFT Code option:
    1. In the SWIFT Code field, specify the SWIFT code or select it from the look-up.
    2. Click Verify to fetch bank details based on Bank Code (BIC).
  3. If you select BankAddress option, , specify the bank details.
  4. In the Confirmation Instructions field, select the appropriate option.
  5. If you select Confirm or May Add option;
    1. From the Requested Confirmation Party list, select the appropriate option.
    2. If you select Confirming Bank option; select the SWIFT Code or Bank Address option and specify the fields accordingly.
  6. Specify the SWIFT details, if Others is selected from Requested Confirmation Party list.
  7. From the Expiry Type list, select the type of expiry applicable to the Outward Guarantee.
    1. If Expiry Type is Conditional; Specify the expiry conditions for the Outward Guarantee in the Expiry Condition field.
    2. If Expiry Type is Fixed or Open, select the appropriate option in the Auto Renewal field.
  8. Select the expiry date for the Outward Guarantee from the Guarantee Expiry Date list.
  9. Select the period after which automatic extension is given to the Outward Guarantee from the Automatics Extension Period list.
    1. If the Automatics Extension Period is selected as Days; specify the details i.e. the number of days for the automatic extension of the Outward Guarantee, in the Automatics Extension Details field.
    2. If the Automatics Extension Period is selected as Other; specify the details of the automatic extension of the Outward Guarantee.
  10. Specify the period after which notification would be given for non-extension of automatic extension while creating Outward Guarantee in the Automatic Extension Notification Period field.
  11. Select the date after which automatic extension validity expires of the Outward Guarantee from the Automatic Extension Final Expiry Date list.
  12. If you have selected Yes option; select the option if it would be triggered on an event or in a time bound manner, in the Liability Change Basis field.
    1. If Liability change basis is Time Bound, select the appropriate option from Unit list.
    2. Specify the values in Frequency, Amount and Percentage fields.
    3. Select appropriate option in the Liability Type field.
    4. Click Get Schedule the schedule with dates/ amount/ percentage would appear along with an option to see whether the change requested is to increase or decrease. The user can modify these details.
  13. In the Sender to Receiver Information field, specify the additional information for the receiver.
  14. In the Special Instructions field, specify the special instructions that you want to give to the Bank.
  15. Select the Kindly Go through all the Standard Instructions, check box. This is a mandatory check for proceeding with the application.
  16. Click the Kindly Go through all the Standard Instructions link to view the customer instructions maintained by bank from back office.
  17. Perform any one of the following actions:
    • Click Next to save the entered details and proceed to the next level.

      The Delivery Details tab appears in the Initiate Islamic Outward Guarantee/Stand By LC screen.

    • Click Save As Draft, system allows transaction details to be saved as a template or draft. (For more details, refer Save As Template or Save As Draft sections.)
    • Click Cancel to cancel the transaction.

      The Dashboard appears.

    • Click Back to go back to previous screen.

Parent topic: Initiate Islamic Outward Guarantee/Stand By LC