Outward Bill Collection Terms & Conditions for SME | DBS SME Banking
Application for Outward Bill Collection (DA/DP) - Terms and Conditions
Please take a moment to read through the Terms and Conditions.
- It is understood and agreed that, having exercised due care in the selection of any correspondent bank (including a foreign branch or subsidiary of DBS Bank Ltd) to whom the abovementioned documents may be sent for collection you shall not be responsible for any act, omission (including any failure to endorse, or re-endorse bills of lading), default, suspension, insolvency or bankruptcy of any such correspondent bank or agent thereof, or for any delay in remittance, loss in exchange or loss of any documents, item or their proceeds during transmission or in the course of collection. We further agree that any correspondent bank instructed to act on this Collection shall be our agent.
- It is further understood and agreed that we will not hold you liable for the loss or destruction of the documents presented under this Collection during transit.
- The Bills of Exchange which we enclose in this Application for financing and / or collection together with invoices, carriage documents or other documents presenting or relating to the Goods, and all other documents enclosed with the request and the Goods represented thereby or to which the documents relate shall be pledged to you as continuing security for all sums in which we may from time to time be actually or contingently indebted or liable to you on any account. We agree to do such acts as may be necessary to perfect your security in the goods. Without prejudice to your other rights herein, in the event that we are in default of payment of any amount due from us arising from the request or otherwise, you shall be entitled, without notice to ourselves, to sell the goods or any part thereof by public auction or private contract (at your sole discretion) and apply the proceeds of sale in or towards payment of the amount(s) for which we are liable to you and if the proceeds are insufficient to settle an amount(s) due to you, we shall pay the amount of the deficiency forthwith upon your demand. The pledge conferred herein shall be in addition to and shall not be in any way prejudiced or affected by any collateral or other security now or hereafter held by you nor shall such collateral or other security or any lien to which you may be otherwise entitled or the liability of any person or persons nor parties hereto for all or any part of this indemnity be in any way prejudiced or affected by the pledge.
- We hereby undertake to provide you with funds:
- To meet on demand all Bills of Exchange negotiated or indorsed by you at our request which may be dishonoured on presentation for acceptance or which may not be paid on sight or on the due date thereof according to the original tenor.
- To reimburse you for all financing made against documents of title or other documents which may not have been accepted and / or paid in accordance with the tenor of the collection bill.
- To meet re-exchange expenses and interest at the current prevailing rate for the respective currency as determined at the sole discretion of the bank from the date of the financing to us till the date you receive reimbursement. If collection charges are to be paid by the Buyer/Drawee, we undertake to pay you the same if the Buyer/Drawee fails to do so.
- In case of dishonour the goods may in your discretion (but not as part of your obligations including the obligation to procure the return of the Bill of Exchange and documents) or that of your correspondent or agent be landed cleared through the customs, warehouse and insured at our expense.
- You are authorised at your absolute discretion:
- To insure the Goods in respect of which you hold documents against all risks and to add the premiums and expenses of such insurance to the amount chargeable to us.
- To exercise your right of recourse upon the Goods in priority to any other claims thereon and to sell such goods or part thereof as may be necessary for payment of freight, insurance, warehouse, dock and other charges, without prejudice to our duty to repay any outstanding amount due to you from such proceeds of sale.
- To land and store the Goods at any wharf or warehouse selected by you and/or reship the same to any other port.
- To accept full or proportionate payment before maturity from the drawees and/or acceptors of any bills, or the Consignees of the Goods, against delivery of the Goods (or a proportionate part thereof) and/or documents.
- To debit our account with all money due from us hereunder and with the amount of unaccepted or unpaid Bills of Exchange or of financing against documents of title or other documents for which we are liable to you or any deficiency arising after realisation.
- Without prejudice to the other provisions in the Agreement, you may sell all or part of the Goods represented by the abovementioned documents or to which they relate in such manner (whether by public auction, private treaty or otherwise) as you think fit if any one of the following events occurs:- After deduction of any commission to which you are entitled and expenses incurred by the sale, you may apply the net proceeds in payment of such advances and/or Bills and/or indebtedness or liability of ours to you, with interest, and re-exchange expenses. The balance, if any, is to be used at your option to discharge any other outstanding liability which we may have against you and subject thereto to be accounted for to us.
- in the event that you have financed or agreed to finance this Collection on default of acceptance on presentation or of payment on due date or at sight of any Bill of Exchange (depending on its tenor) or on default of payment of any other sums due hereunder on due date.
- in the event that you have financed or agreed to finance this Collection on the drawee or acceptor of any Bill of Exchange or Consignee of the goods suspending payment, becoming bankrupt or insolvent, being put under receivership or taking any steps for liquidation or arrangement with creditors.
- in the event that you have financed or agreed to finance this Collection if and whenever you consider it desirable having regard to the market value of the goods that the goods should be sold whether or not any contingent or other liability of ours to you shall have actually matured.
- on our failure to repay on demand any payment made by you or other indebtedness of ours to you (whether or not connected with or arising from this Application) together with all interest, commissions and other charges in respect thereof.
- Should any claim arise under any insurance you are authorised to recover the full amount thereof and we agree to assign to you the policy or policies for that purpose. You may charge the same commission on the proceeds payable under such insurance as upon a sale of goods and apply the proceeds in the manner provided above and/or to satisfy all sums, indebtedness, interest, charges, commissions and other sums due to you in connection with the abovementioned Collection.
- Your holding additional securities and/or the receipt of goods and/or documents by you shall not prejudice your rights on any Bill of Exchange in case of dishonour nor shall any recourse or proceedings taken thereon. It is also agreed that your rights against us shall not be prejudiced owing to any such Bills not having been noted and/or protested in the event of dishonour by non-acceptance and/or non-payment.
- If there occurs in relation to the Collection an Extraordinary Event (as defined below), you shall have the sole discretion to receive payment under the Collection in any alternative currency at such exchange rate as you may determine in your discretion. Provided you undertake such action in good faith, any such action shall be binding on us who shall be liable for any additional loss, damages, costs, charges and/or expenses incurred by you. An “Extraordinary Event” shall mean any event which you believe to have a material adverse effect, including any form of exchange control restriction or requirement of whatsoever nature affecting the availability, convertibility, credit or transfers of currencies or funds, any form of debt or other moratorium on jurisdictions, individuals or entities, any devaluation, re-denomination or de-monetisation and/or any form of restriction or requirement which in your good faith opinion adversely alters or changes the rights or obligations which you undertook when you make an advance pursuant to our Application under this Collection.
- We further agree to the following:-
- any financing is with recourse to us under all circumstances and notwithstanding that all the terms and conditions of the Collection have not been complied with, or that you may not have complied with to our instructions;
- in the event of financing, to pay you for any shortfall in amount received by you;
- to meet all charges incurred by you or your correspondent or agent;
- to reimburse you for all interest incurred from the date of any payment by you to the date of the receipt of proceeds by you sufficient to cover the credit extended to us;
- not to hold you or your correspondent bank or agents liable in the event that the documents or some of the documents are lost, destroyed or delivered wrongly by the courier service company selected by you or wrongly delivered by the postal office;
- Unless otherwise expressly agreed in writing or unless otherwise provided herein this Collection is subject to the Uniforms Rules for Collections, ICC Publication No. 522 or any replacement thereof as may be in force at the time of this Application.
- We hereby irrevocably and unconditionally undertake and agree to indemnify you, your successors and assigns in full and at all times to keep you, your successors and assigns fully and completely indemnified from and against all liability, claims, demands, actions, proceedings, payments, losses and expenses whatsoever including but not limited to legal costs as between solicitor and own client which may be made or taken or incurred or suffered by you in connection with our Application herein.
- Where there is any reference in this Application or any form, agreement and correspondence relating to this Application or any handling or processing of documents by you to finance this Collection and documents presented thereunder and/or any Bills of Exchange “subject to final receipt of fund” from Drawee or his Banker, it is hereby agreed that such financing shall be conditional upon and subject to payment under the Collection/ documents presented thereunder/ Bills of Exchange from the Drawee or his Banker and receipt by you of such payment. Without prejudice to the foregoing, where, for any reason whatsoever, whether with or without legal basis, payment of the proceeds under the Collection or Bills of Exchange is not received by you from or not made by the Drawee or his Banker as and when such payment is due or if one or more of the documents presented under the Collection is forged or contains any misrepresentation or false factual information known to us, any amount paid by you to us pursuant to such advance shall become immediately repayable to you by us and you shall have full recourse against us in respect of such payment as has been made to us earlier.
- Without prejudice to the generality of the other terms and conditions herein, where financing is provided to us pursuant to this Application, we shall and do hereby assign unconditionally and irrevocably to you all rights, interests, benefits, entitlements, debts, suits and choses in action as are due under or in connection with the underlying contract of sale between us and the Drawee and/or Bill of Exchange and we irrevocably authorise you to give notice of such assignment to the Drawee and his banker.
- We agree that you may commence any legal action or proceedings in our name if necessary and that we would provide you our full and diligent co-operation, including the execution of any documents, affidavits and powers of attorney, in any action or proceedings commenced (whether in our name or not) to enforce your rights against or obtain payment from the buyer or any other party.
- For avoidance of doubt and subject to the proviso appearing below, it is the intention of the parties that any terms, interests, rights, benefits, defences, exemptions or limitations in this Agreement shall not be enforceable by a third party (save and except for a third party as defined below) pursuant to the Contracts (Rights of Third Parties) Act of Singapore (“the Act”), provided always that nothing herein operates to prevent or limit your right to assign, novate, otherwise confer any benefit or interest in favour of any other party, apart from the Act. The terms, interests, rights and benefits referred to above shall include but are not confined to any banking facilities, advances, loans, financing or any other form of financial accommodation that you provide or may provide under this Agreement.
Provided always that it shall be the intention of the parties that all defences and limitations in this Agreement shall be enforceable by all of your subsidiaries (whether wholly or partly owned), parents, branches, any other bank within DBS Group Holdings Ltd, whether carrying on business in Singapore or not, successors in title or assigns of the Bank, entities into or with which the Bank may merge or consolidate, any entities formed as a result of acquisition, by or of the Bank as well as your employees, sub-contractors and agents, all of whom or which shall be deemed as third parties for the purposes of the Contracts (Rights of Third Parties) Act of Singapore. For the purposes of this Act, consent of any of these third parties is not required for any variation, rescission or termination of this Agreement.
- We authorise you to debit any or all of our accounts with you by way of payment in advance of all costs, charges, commissions, expenses and liabilities which you, your agents or your correspondents may incur in relation to or in respect of the Collection. The aforesaid advance payment is an absolute and unconditional payment and you shall not be obliged, under any circumstances whatsoever, to refund the same to us. You shall be at liberty to utilize or otherwise deal with the advance payment in any manner as you deem fit and we confirm that we have no further title, interests, rights or benefits to the moneys comprising the advance payment. The abovementioned advance payment shall not discharge or otherwise affect any other claims for reimbursement, repayment, interest, expenses and/or costs that you have or will have against us in respect of any instrument which you have issued or will issue at our request, or in respect of any credit or banking facilities or other accommodation which you have granted or will grant to us.
- This Agreement shall be governed by and construed in accordance with the laws of Singapore. In the event of any proceedings or suits commenced against us arising out of or in connection with this Collection, we agree to submit to the non-exclusive jurisdiction of the Courts in Hong Kong and Singapore, at your option, in respect of any disputes arising out of or in connection with the Collection. Without prejudice to the foregoing, we undertake not to commence proceedings or suits against you in the courts of any other jurisdiction. In the event of any proceedings or suits commenced by us against you, we agree that Singapore Courts shall have exclusive jurisdiction in respect of any disputes arising out of or in connection with the Collection. We agree to waive and do so waive any right vested on us by the laws of the jurisdiction in which we carry on business to challenge the validity or legality of any part of this provision.
For your added ease and convenience, this form is available as an interactive eForm which you may download below.
By ticking on this box and by printing and submitting to you the Application For Processing Of Documents For Outward Bill Collection form which follows, we have read, understood and acknowledged the Terms and Conditions for Application For Processing Of Documents For Outward Bill Collection and fully authorize the Bank to proceed with the provision of the service. We also understand and agree that the Bank may modify the Terms and Conditions for the Application for Processing of Documents for Outward Bill Collection without prior notice to us at any time.