REQUIRED DOCUMENTS FOR OPENING LC:

PRACTICAL EXPERIENCE ON LC-

STEP BY STEP PROCEDURE WITH ACCOUNTING ENTRIES.
prepared by-Md. Abul Hasan, AGM, PBL, Prinipal Bran!
Step 1:
Borrower selection: (most important part of operational level)
* Asking for borrower need /demand
* Education, age, family , social connection reference
* !ature of business "commercial, industrial, agricultural, corporate, private, public,
proprietors#ip, partners#ip, co"operative, $ovt%, &'E etc%
* Business address location%
* !ew business link or e(isting wit# previous e(perience performance
* )ocumentary evidence regarding e(perience performance
* E(isting Bank details reason for switc#ing%
* *inancial sales position
* &ales area target customer wit# product
* +ompetitors position
* ,ersonal net"wort# security offered
* !ature of security"*)-,.A!) ,Building etc
* .ocation value of security
* /wners#ip of t#e security
* +#eck w#et#er borrower demand is wit#in t#e branc# discretion or needed for
-//0ead /ffice approval
* )iscussion primary approval from branc# manager
* &atisfy yourself to proceed
Hasan
Step-2:
* +all for submission of papers as per c#eck list considering t#e nature of business
arrangement of a/c opening wit# t#e branc#%
common c#ecklist of documents to be call for:
1 Application from borrower mentioning details of credit facility re2uired
1 *. 34/35 revised
1 Board resolution regarding credit facility
1 ,#otograp#s of all director/partner/owner
1 copy of !ational 6) card
1 Bio"data of all directors of t#e company/firm
1 ,ersonal !et"wort# statement(bank7s proforma /68 9:B) of all director/owner
1 Angikernama /undertaking form ;A of all director for collection of +6B report from
BB%
1 <pto date 86! certificate of all director of t#e company/firm
1 copy of memorandum Articles of Association duly signed by -=&+ *
1 +ertificate of 6ncorporation
1 certificate of commencement
1 &c#edule > *orm >66 of -=&+ *
1 upto date 86! certificate of t#e company/firm
1 upto date 8rade .icense of t#e firm/company
1 upto date copy of c#amber certificate
1 <pto date copy of 6-+/E-+
1 )eclaration of group liability wit# ot#er bank/*6 wit# !/+
1 )eclaration regarding no overdue Bill of Entry wit# !/+
1 transfer of 6-+ at our end
1 previous sanction copy(if any)
1 Audited financial statement of last ? years or pro@ected statement
1 ,ermission from Board of 6nvestment
1 permission from &E+
1 *actory license from inspector of factory
1 Bonded ware#ouse license from customs bond commissioner
1 )eed of rent
1 compliance certificate from respective aut#ority for building code
1 stock report
1 list of mac#inery report
1 *ire service +ivil defense certificate
Hasan
1 6nsurance policy regarding coverage
1 E,B enrollment certificate
1 E-' certificate
1 credit report of t#e supplier
1 ,roforma 6nvoice
1 obtaining security documents: documentation must be completed before
disbursement of any credit facility%
&ecurity documents: /riginal title deed, bia"deed, 'utation parc#a, ;#atian,
+&,&A,,&,+-&,B&, 'o#anagar /+ity Aarip, &katc# map, mouBa
map,
)eed of mortgage, )eed of Agreement, ')8), <ndertaking,
All c#arge documents" ), !ote single/@oint, personal guarantee, letter of
lien, letter of confirmation, letter of guarantee, letter of undertaking, letter of
#ypot#ecation, letter of acceptance, 8rust -eceipt, balance
confirmation certificate, c#arge creation wit# -=&+ *
* Business site security verification by Bank7s enlisted surveyor%
* Business site security verification by t#e branc# manager credit officer
* &crutiny of security documents by Bank7s enlisted lawyer
Step -3
* Analysis preparation of credit proposal as per +-' guideline %
* ,reparation of *."C: (revised) +-$
* ,lacement of t#e proposal to t#e branc# credit committee for approval
* &end t#e proposal along wit# all necessary papers to t#e 0ead /ffice as per c#eck
list%
Hasan
Step -4
* /btainment of sanction letter t#oroug# study t#e terms and conditions of
sanction letter%
* &ecurity documents: /riginal title deed, bia"deed, 'utation parc#a, ;#atian,
+&,&A,,&,+-&,B&, 'o#anagar /+ity Aarip, &katc# map,mouBa map,)eed
of
mortgage, )eed of Agreement, ')8), <ndertaking,
All c#arge documents" ), !ote single/@oint, personal guarantee, letter of
lien, letter of confirmation, letter of guarantee, letter of undertaking, letter of
#ypot#ecation, letter of acceptance, 8rust -eceipt, balance confirmation
certificate, c#arge creation wit# -=&+ *%
* Must Keep all circulars/guideline/books & publications in your custody for
compliance
!ollection of credit report of t"e beneficiary
!onfirm t"at applicant deposit sufficient amount in "is account
Step -#
* $pening of %!:
-e2uest letter from t#e borrower wit# 6nvoice, .+ application, .+A*, 6', duly filled
signed by aut#oriBed person%
* /btaining 6nsurance cover note wit# payment order as a proof payment of
premium%
" LC nu#berin$

0201 14 01 0001
%& ' Cash sight LC
02- cash usance LC
03- Inland BB sight
04 BB-Inland BB usance
05 Foreign BB sight
06 Foreign BB usance LC
07- under Aid/Loan
08- under STA
09- EPZ cash sight
10- EPZ cash usance
11- EPZ BB sight
12- EPZ BB usance
99- others
Prearation o! LC in "#IF$ % setting o! ter&s and conditions o! LC
Hasan
Year
A Branch !ode
"ature/T#$es o% L/! SL "o/Se&uence
LC Chec'ing (ith )" code details &atching
*eali+ation o! charges % &argin

Hasan
,ccounting Procedure in I&ort L-C.
/P01I12 /F LC 3,"$0* FIL0 I1 PIB" % BB online osting
Contingent lia4ilit5.
6r7 Custo&er Lia4ilit5 8nder Foreign L-C 93:2-3:3;
Cr7 ,ccetance Lia4ilit5 8nder Foreign L-C 91<<;
9/nl5 one Contra entr5 =oucher;
6r7 Custo&er C6-CC-/6-"$6-"16 ,-c
Cr7 3arginal 6eosit L-C
Cr7 Co&&ission on oen-a&end o! !oreign L-C
Cr7 5> "ource $a?
Cr7 =,$ at "ource on L-C Co&&ission
Cr7 P"I
Cr7 "#IF$ Inco&e
Cr7 "ta& in )and
PIB" osting % &anual hard co5 reser@ation % 4alancing o! all categor5
transaction (ith signed 45 authori+ed erson .
3arginal 6eosit *egister% 4alancing.
&. (i$. Ini)ial (i$na)ure *+ au)!*ri,ed *++ier
Bill Re$is)er- L*d$#en).

&. Bill Re$is)er /a)e.
0. B-E 1Bill *+ E2!an$e3N*. 4BC N*. . E2p*r)er Ban5 L-C Re+erene
6. 7nder *ur L-C N*. . PBL L-C N*.
8. /ra9er. 4*rei$n Ban5 in+*r#a)i*n
:. /ra9ee. I#p*r)er In+*r#a)i*n
;. /*u#en)s.
N*. *+ Bill E2!an$e
N*. *+ In<*ie
Pa5in$ Lis)
N* *+ Bill *+ Ladin$
CO 1Cer)i+ia)e *+ Ori$in3
Hasan
O)!ers
=. A#*un). 4-C A#*un), Ra)e, B/ Ta5a
>. Mer!andise. L-C Pr*du) In+*r#a)i*n ? @)y.
". Na#e *+ ()ea#er, /a)e *+ B-L. Na#e *+ Transp*r), B-L 1Bill *+ Ladin$ N*.3
&%. /a)e *+ re#inder sen). PBL send )* 4-C Ban5 i+ any pr*ble# *urred.
&&. (peial Ins)ru)i*n *+ /ra9ers C*lle)in$ Ban5. (peial ins)ru)i*n +r*# 4*rei$n Ban5
i+ any.
&0. Ini)ial.
&6. /a)e *+ Reali,a)i*n ? A#*un) Reali,ed. Bill pay#en) +r*# par)y a#*un) and /a)e.
&8. Ini)ial
&:. Re#ar5s
PA/ 1Pay#en) A$ains) /*u#en)s3.
PA/ Re$is)er.
Headin$.
L-C N*..
L-C /a)e.
PA/ N*..
I#p*r)er Na#e ? Address.
/*u#en) /a)e.
L-C /*u#en) A#*un).
C*##*di)y.
@uan)i)y.
Ra)e *+ In)eres).
&. /a)e.
0. Par)iulars
6. /ebi)
8. Credi)
:. Balane
Hasan
;. Ini)ial
=. Re#ar5s
Hasan
A*un)in$ Pr*ess in PA/.
/r. PA/ A-C 1Transi)i<e )ype L*an A*un)3
Cr. HO 1TRA3 1B/ Ta5a *+ 4C3
Cr. C!ar$es
Cr. C!ar$es In*#e
Cr. In)eres) *n PA/ 1in PA/ rea)i*n3
In)eres) alula)i*n si#ple &8-&:B
In)eres) a#*un) C 1Prinipal A#*un) X /a)e X In)eres) Ra)e3 - 6;%
PA/ Ou)s)andin$. PA/ is n*) *u)s)andin$ 9i)!in 6% days. I+ PA/ is n*) adDus) BANE an n*) sub#i)
d*u#en)s.
(a#e day 9!en PA/ rea)e
/r. Mar$inal /ep*si) A-C
Cr. PA/ A*un) A-C
I+ par)y a*un) !a<e en*u$! #*ney
/r. Par)y A-C
Cr. PA/ A-C
Cr. C!ar$es any
A+)er &% days 9!en par)y *#e BANE
/r. PA/ A-C
Cr. In)eres) *n PA/
/r. Par)y A-C
Hasan
Cr. PA/ A-C
N.B. F!en PA/ is adDus)ed )!en L-C is l*se. I+ par)y is n*) apable )* adDus) PA/ )!en Ban5 9ill $i<e
!i# )9* )ypes l*an adDus)ed PA/ A-C. T!*se are
LATR 1L*an A$ains) Trus) Reeip)3
LIM 1L*an A$ains) I#p*r) Mer!andise3
In LATR-LIM l*an a$ree#en) 9i)! par)y +*r & year.
LATR 1L*an A$ains) Trus) Reeip)3.
LATR Re$is)er. 1LATR l*an is *nly "% days3
Headin$.
LATR N*..
L-C N*..
L-C /a)e.
PA/ N*..
PA/ /a)e.
Aalidi)y.
B*rr*9er Na#e ? Address.
C*##*di)y.
@uan)i)y.
Ra)e *+ In)eres).
(an)i*n au)!*ri)y.
&. /a)e.
0. Par)iulars
6. /ebi)
8. Credi)
:. Balane
;. Ini)ial
=. Re#ar5s
Hasan
A*un)in$ Pr*ess in LATR.
/r. LATR A-C
Cr. PA/ A-C 1PA/ is adDus)3
A+)er 6 #*n)!
/r. Par)y A-C
Cr. LATR A-C
/r. LATR A-C
Cr. In)eres) *n LATR A-C 1LATR in)eres) daily pr*du) basi3
LIM 1L*an A$ains) I#p*r) Mer!andise3.
LIM Re$is)er.
Headin$.
LIM N*..
L-C N*..
L-C /a)e.
PA/ N*..
PA/ /a)e.
Aalidi)y.
B*rr*9er Na#e ? Address.
C*##*di)y.
@uan)i)y.
Ra)e *+ In)eres).
(an)i*n au)!*ri)y.
&. /a)e.
Hasan
0. Par)iulars
6. /ebi)
8. Credi)
:. Balane
;. Ini)ial
=. Re#ar5s
Hasan
F!en $**ds reeip) in Ban5 ()*re R**# )!en LIM is rea)e. T!ere are a a$en) alled C?4 1Clearin$ ?
4*r9ardin$ A$en)3
/r. LIM A-C 1F!en $**ds s)*re in Ban5 Fare!*use3
Cr. PA/ A-C 1LIM rea)i*n +*r PA/ AdDus)#en).3
Cr. C?4 C!ar$es
/r. Par)y A-C
Cr. Cus)*#er /u)y 1PO-//3
/r. PA/ A-C
Cr. In)eres) *n PA/ A-C

/r. Par)y A-C
Cr. LIM A-C
/r. LIM 1LIM AdDus)#en)3
Cr. In)eres) *n LIM
Cr. Ban5 ()*re R**# Ren)
Cr. Insurane *n pre#ier
Cr. Handlin$ C!ar$e
Cr. O)!ers !ar$es
/O 1/eli<ery Order3
T!ere are 6 s)eps in i#p*r) L-C.
Hasan
L/C Opening
Ou)pu) *+ L-C - Head O++ie Rep*r).
&. L-C Openin$ re$is)er
0. Mar$inal /ep*si) ()a)e#en)
6. Cus)*#er Liabili)y ()a)e#en)
8. Bill Re$is)er
:. PA/ re$is)er
;. LIM ? LATR re$is)er
=. L-C Balane ()a)e#en)
>. I)e# 9ise L-C lis)
". L-C *u)s)andin$ balane rep*r) 1Curren) 9ise3
N.B. All rep*r) #us) !a<e da)e ran$e
C*n)en) *+ A*u!er.
&. /a)e
0. Par)iular
6. A#*un)
8. A*un) Head
:. C!ara)er 1/r. - Cr.3
Hasan
L/C Lodgment
L/C Retirement
Life Cycle of L/C:
Hasan
'($orter 'ssue
Ban)
Ad*ising Ban) E+$orter
"egation Ban)
! heck list of required papers & documents for financing to Real Estate
Borrowers!e"elopers of land & Building#
$ %ick# indicates &u'mission is a must(
)articulars
)artnership Enclose
*es +o
1 ,e&uest -etter on -etter head/$-ain $a$er o% the a$$-icant .orro/er 0
2 Loan a$$-ication %or( 1L-28 0
3 1L-40 5,e*ised6 0
7 Persona- "et /orth State(ent o% a-- Partners /ith $ro$ert# detai-s 0
2 Bio-ata o% a-- Partners 0
4 !o$# o% Partnershi$ eed 5,egistered/ "otarised6 0
7 E+tract o% 8eeting 0
8 ec-aration o% the Partners regarding -ia.i-it#9 i% an#9 /ith other
Ban)5s6 inc-uding Su.sidiar# /A%%i-iates/ Associates/ Sister
concern /ith e+tent o% interest (entioning -i(it9 *a-idit#9
outstanding9 securit# : status;
0
9 A/c state(ent /ith PBL 5-ast one #ear6 - /here a$$-ica.-e 0
10 A/c state(ent /ith other .an)s %or the -ast 1 #ear 5/here
a$$-ica.-e6
0
11 <eri%ication re$ort on .usiness site o% the .orro/er .# the B8 :
the ,8 5/here necessar#6
0
12 Photogra$h o% the Partners du-# attested .# the B8 0
13 Photogra$h o% s$ouse/guarantor5s6 i% an# - du-# attested .# the
.orro/er : counter signed .# .ranch o%%icia- 5/here a$$-ica.-e6
0
17 Photogra$h o% the .usiness site/sho$ /ith dis$-a# o% Sign Board
5/here a$$-ica.-e6
0
12 <a-id Trade License 0
14 <a-id =ther License5/here a$$-ica.-e6 0
17 <AT ,egd; !erti%icate 5/here a$$-ica.-e6 0
18 T'"/ Ta+ !-earance !erti%icate 0
19 !redit ,is) >rading 5!,>6 0
20 Satis%action !erti%icate regarding transaction 0
21 Branch Position 5Last 8onth6 0
22 "egati*e -ist o% Accounts 0
23 !o$# o% -ast 3 #ears Audited / ?naudited / Pro@ected
%inancia- state(ents
27 !o$# o% *a-id -ease Agree(ent /ith u$todate 8one#
,ecei$t 5i% rented6
$
22 !'B 'n&uir# %or(s /ith Angi)arna(a 0
24 !onsent -etter o% the guarantor attested .# the Borro/er :
B85/here a$$-ica.-e6
0
29 Persona- "et Aorth State(ents o% >uarantor /ith $ro$ert#
etai-s
0
30 !o$# o% Sanction/Last rene/a- -etter 0
31 BLABs satis%action certi%icate regarding securit# / docu(ents in
standard %or(at 5in case o% rene/a- / enhance(ent6
0
32 ocu(ents !on%ir(ation !erti%icate 0
33
e*e-o$erBs $ro%i-e
0
Hasan
37 !o$# o% 8e(orandu( and Artic-es o% Association o% the
e*e-o$er !o; %ro( the ,egistrar o% Coint Stoc) !o($anies
: 1ir(s 5,CS!16
0
32 'rre*oca.-e >enera- Po/er o% Attorne# 0
34 A--ot(ent -etter 5/here a$$-ica.-e6 0
37 A$$ro*a- as e*e-o$er %ro( co($etent authorit# 0
38 ,EDAB (e(.ershi$ certi%icate 5i% an#6 0
39 Biana(a eed /ith 8one# ,ecei$t 0
70 Tit-e ,e$ort on the -and .# the de*e-o$erBs -a/#er 0
71 Aor) in $rogress re$ort 0
72 "o =.@ection !erti%icate 5"=!6 %ro( other Ban)5s6 %or
creating $ari-$assu charge / others /here a$$-ica.-e 5in case
o% S#ndication -oan6
0
73
)apers/ documents relating to the collateral
property if offered as security#
BLABs o$inion (entioning chain o% docu(ents
0
77 Tit-e eed9 "on-encu(.rance !erti%icate 0
72 !S9 SA9 ,S9 8utation9 !,9 DAL9 8ohanagar Parcha/BS 0
74 Photogra$h o% co--atera- a-ong/ith its schedu-e on the .ac) du-#
signed .# the o/ner : certi%ied .# .ranch (anager
0
77 <a-uation certi%icate o% e+isting / $ro$osed co--atera-s 0
78 !o$# o% u$todate !it# !or$oration / 8unici$a- Do-ding Ta+
$aid ,ecei$t 5in case o% o/n $re(ises : /here a$$-ica.-e6
0
79 ?$to date rent recei$t 0
20 A$$ro*ed $-an and a$$ro*a- -etter %ro( ,AC?E / !oncerned
Authorit# 5/here a$$-ica.-e6
0
21 ,ecent Sur*e# ,e$ort /ith S)etch 8a$ 0
22 !onsent -etter %ro( (ortgagor 5'n case o% third $art# >uarantee6 0
23
"=! %ro( the !oncerned Authorit# in case o% -ease ho-d
$ro$ert# 5/here a$$-ica.-e6
0
27 8utated Parcha %ro( re-e*ant >o*t-=%%ice %or -ease $ro$ert# 0
22 Per(ission %ro( re-e*ant Authorit# to (ortgage the -and
5Ahere A$$-ica.-e6
0
24 "=! %ro( re-e*ant authorit# regarding (ortgage 5in case o%
Lease Do-d Pro$ert#/ /here a$$-ica.-e6
0
27 Encu(.rance !erti%icate /ith Search ,ecei$t5'n case o%
rene//enhance(ent6;
0
Hasan
=11SD=,E BA"E'">
=PE,AT'="AL P,=!E?,E
Hasan