Trust Receipt | Bills Receivables Application T&C | DBS SME Banking
APPLICATION FOR IMPORT FINANCING – TERMS AND CONDITIONS (‘T&C’)
Please take a moment to read through the Terms and Conditions and download the form at the bottom of the page.
Post-shipment Financing (Trust Receipt and/or non Trust Receipt) under DBS Letter of Credit/ Documentary Collection
Freight Loan Financing
Post-shipment Financing/ Payable Invoice Financing
- In consideration of you granting to us financing requested for under the Application of Import Financing (the “Application”), we hereby agree to all terms and conditions stipulated below as well as the terms and conditions set out in your general banking terms and conditions as well as any letter of offer or any facility letter from you to us.
- Irrespective of the type of financing provided or to be provided to us and without prejudice to the provisions set out below, we warrant and/or agree that:
- There is a genuine, underlying transaction for the sale / purchase of goods which are the subject of the Application (the “Goods”, which expression shall, as the context requires, include the relevant document of title).
- We will at your request provide other documents evidencing the transaction.
- We have not obtained and shall not obtain any other form or type of financing from any party other than you for the Goods or any letter of credit which is the subject of the Application (the “Letter of Credit”).
- We will repay you the full amount of loan or financing extended to us on due date as well as all outstanding principal, interest, charges and commissions due to you.
- On due date of the financing provided to us, you are authorised to deduct our account with you for the amount drawn under the Letter of Credit or Collection Bill or otherwise specified herein, together with all charges, commissions, costs, disbursements and expenses payable by us to you.
- Until all amounts owing by us to you have been fully paid, you retain all rights on the Goods and/or proceeds of sale of the Goods.
- We agree to fully indemnify DBS Bank Ltd and its overseas branches and subsidiaries and other banks under DBS Group Holdings Ltd (collectively hereinafter referred to as “DBS”) and/or its agents on demand against all actions or claims commenced against, demands, costs, payments, expenses, liabilities, losses, disbursements, payments of whatsoever nature now or hereafter incurred or to be incurred by DBS or by any agent, correspondent, officer or employee of or for whom DBS may be answerable for anything done or omitted to be done in connection with or arising out of the performance of terms and conditions contained in this Application.
- The Contracts (Rights of Third Parties) Act 2001 does not apply to confer any rights on any party who is not a party to this Application.
- Post-shipment Financing (Trust Receipt and/or non Trust Receipt) under DBS Letter of Credit/ Documentary Collection
- We acknowledge that DBS has delivered to us and we have accepted pursuant to terms and conditions hereafter appearing Goods which are or have been pledged by us as security in favour of DBS for the financing provided or to be provided under the Collection Bill referenced on the face of this Application or pursuant to the terms and conditions set out in the Application for the issuance of the Letter of Credit referenced above. We further agree to store and hold the Goods on trust for DBS, with authority (subject to any subsequent revocation of such authority) to sell the same as agent and for the account of DBS at full market value but without authority to make any other disposition whatsoever of the Goods or any part thereof or the proceeds of sale of such Goods as part thereof either by way of conditional sale, pledge, charge or otherwise.
- For the avoidance of doubt, where documents released to us consist of less than the full set of bills of lading, we confirm that the terms and conditions stated herein and all your right conferred herein shall nevertheless apply.
- We agree to obtain delivery of and to warehouse the Goods on your behalf but at our expense, and to hand to you upon your demand all warehouseman receipt, attornment or such document evidencing title or right of possession. We shall keep DBS informed at all times of any movement of goods from the place of storage. We further agree to comply with any of your instructions as to the means or manner of transporting, warehousing and storage of the Goods.
- We agree that as documents are released to us hereunder, we are deemed to have accepted the documents as well as waived all our rights to reject the documents on any ground, including the ground that the documents presented are incomplete or do not comply with the requirements of the Letter of Credit or of the Collection Bill and/or that they otherwise contain any discrepancies.
- We also undertake to keep the Goods fully insured against fire, theft, pilferage, marine risks and/or such other risks or contingencies if any as the Bank may from time to time require and to hold the policies on behalf of DBS and to pay the sum insured in case of loss to DBS immediately. Such warehousing and storage charges, insurance premium and any other expenses incurred on or in relation to the Goods should be borne entirely by us. We also undertake to take all steps towards the recovery of any losses or damages suffered by DBS in respect of the Goods, including if required by DBS, commencing proceedings in our own name or in the joint names of DBS and us.
- Where the Goods or any part thereof are sold, we agree to hold and do so hold the proceeds of sale as soon as received on trust for DBS and to hand over to or otherwise place the proceeds of sale in a designated account with DBS immediately thereafter, to be applied in payment against such of our indebtedness to DBS whether or not arising out of or in connection with the Collection Bill or Letter of Credit referenced above or the Goods.
- We confirm that the Goods and any products manufactured therefrom (over which you are entitled to the rights as are vested in you herein in relation to the Goods) would not be subject to any other security, lien or encumbrance. We further warrant that we are not indebted to the Buyer of the Goods and the Buyer of such Goods does not have any actual or contingent right of set-off against us which may lead to a reduction of the proceeds of sale payable on the Goods.
- Freight Loan Financing
- DBS may at any time at its sole discretion, terminate this trust, demand or resume possession of the Goods and/or demand payment or a legal assignment of the proceeds of sale of the Goods. In the event of any failure on our part to observe the terms of the application for issuance of the Letter of Credit, the Collection Bill or this Trust Receipt, any failure to make or lateness in payment of the amount under the Letter of Credit, the Collection Bill or any part thereof or the proceeds of sale to DBS, all of our obligations, acceptances, indebtedness and liabilities whatsoever shall thereupon (with or without notice) mature and become due and payable.
- We warrant that the loan to be extended to us shall be used only for payment of freight incurred or to be incurred for carriage of the Goods purchased by us, whether such carriage be under Bill of Lading or Charterparty.
- We enclose together with the Application copies of the booking note / fixture note / Charterparty / bill of lading as supporting evidence of the contract of the carriage which we have entered into as well as the amount of freight payable.
- Post-shipment Financing/ Payable Invoice Financing
- We agree and/or warrant that you shall have a pledge over the relative Goods and any documents of title thereto purchased by you, which shall not be damaged, destroyed or diminished in quantity in any way, pending full payment of all our outstanding loan, interest, charges and commissions to you. You shall have a right to sell all or part of the Goods on such terms as you may determine without reference to us on our failure to repay on demand any advance, loan and/or financing made by you or any interest, commission or charges due to you, any default of payment at maturity of any Bills of Exchange accepted by us and in the event of any insolvency or winding up proceedings commenced against us.
- Governing law
- This Application and the T&C are governed by Singapore law and parties agree to the non-exclusive jurisdiction of Singapore Courts.
By ticking on this box and by printing and submitting to you the application for Import Financing which follows, we have read, understood and acknowledged the Terms and Conditions for Import Financing 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 Import Financing without prior notice to us at any time.