In consideration of your issuance of the abovementioned credit :
1. I/We hereby undertake to pay sight draft/s drawn there under on presentation and to accept time draft/s on presentation aswell as to pay same at maturity together with your usual interest and all charges incurred. I/We further authorize you to debit my/our account with you or your branchupon receipt of relevant documents or debit note by you .
2. I/We do hereby pledge to you the merchandise, documents, Insurance Policy/iesor certificate/s and all proceeds deriving there from as security/iesfor all liabilities and obligations incurred by you at present or in the future. I/We also agree that, at your absolute discretion, you are authorized to sell the merchandise without prior demand or notice to me/us. Furthermore, I/We undertake to indemnify you against any deficiency after the realization of said merchandise.
3. Where the value of merchandise is F.O.B. or C&F, I/We undertake to provide adequate cover against all usual risks by policy/iesor certificate/s issued by approved Insurance Company and to assign all proceeds thereof to you and to lodge said policy/iesor certificate/s with you if called to do so. You are also authorized to insure the merchandise at my/our expense should you deem it necessary.
4. I/We agree that the rights and powers conferred to you hereby are in addition to and without prejudice to any other security which you may now or hereafter hold.
5. I/We agree that while the rate of exchange used in settlement of draft/s drawn under this Credit is normally that prevailing on the date of such settlement, unless otherwise agreed, you may utilize at your option the selling rate prevailing on the date of your reimbursement to the negotiating bank or that prevailing on the date of delivery of documents.
6. I/We agree that the Issuance and transmission of this Credit whether by airmail, telex or cable is entirely at my/our own risk and I/We undertake to notify you of discrepancy, if any, immediately after receipt of copy of the Credit from you.
7. I/We hereby agree that this Credit is subject to Uniform Customs and Practice for Documentary Credit (2007 Revision), International Chamber of Commerce Publication No.600.