REQUIRED DOCUMENTS FOR OPENING LC:

PRACTICAL EXPERIENCE ON LCSTEP BY STEP PROCEDURE WITH ACCOUNTING ENTRIES.

prepared by-Md. Abul Hasan, AGM, PBL, Prin ipal 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% performance performance !ew business link or e(isting wit# previous e(perience )ocumentary evidence regarding e(perience E(isting Bank details *inancial &ales area reason for switc#ing% sales position target customer wit# product security offered

+ompetitors position ,ersonal net"wort# .ocation !ature of security"*)-,.A!) ,Building etc 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

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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 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 wit# !/+ 1 )eclaration regarding no overdue Bill of Entry wit# !/+

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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 certificate, c#arge creation wit# -=&+ * Business site Business site security verification by Bank7s enlisted surveyor% security verification by t#e branc# manager credit officer

confirmation * * *

&crutiny of security documents by Bank7s enlisted lawyer

Step -3 * * * * list% 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

Hasan

Step -4
* * 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% * premium%
"

/btainment of sanction letter sanction letter%

t#oroug# study t#e terms and conditions of

&ecurity documents: /riginal title deed, bia"deed, 'utation parc#a, ;#atian, +&,&A,,&,+-&,B&, 'o#anagar /+ity Aarip, &katc# map,mouBa map,)eed

/btaining 6nsurance cover note wit# payment order as a proof payment of

LC nu#berin$
A Branch !ode Year "ature/T#$es o% L/! SL "o/Se&uence

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 Pre aration o! LC in "#IF$ % setting o! ter&s and conditions o! LC

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LC Chec'ing (ith )" code details &atching *eali+ation o! charges % &argin

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,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 ,cce tance Lia4ilit5 8nder Foreign L-C 91<<; 9/nl5 one Contra entr5 =oucher;

6r7 Custo&er C6-CC-/6-"$6-"16 ,-c Cr7 3arginal 6e osit L-C Cr7 Co&&ission on o en-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 co 5 reser@ation % 4alancing o! all categor5 transaction (ith signed 45 authori+ed erson . 3arginal 6e osit *egister% 4alancing.
&. (i$. Ini)ial (i$na)ure *+ au)!*ri,ed *++i er

Bill Re$is)er- L*d$#en).

&. 0. 6. 8. :. ;. Bill Re$is)er /a)e. B-E 1Bill *+ E2 !an$e3N*. 4BC N*. . E2p*r)er Ban5 L-C Re+eren e 7nder *ur L-C N*. . PBL L-C N*. /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<*i e Pa 5in$ Lis) N* *+ Bill *+ Ladin$ CO 1Cer)i+i a)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. &&. (pe ial Ins)ru )i*n *+ /ra9ers C*lle )in$ Ban5. (pe ial 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).

&. 0. 6. 8. :.
Hasan

/a)e. Par)i ulars /ebi) Credi) Balan e

;. Ini)ial =. Re#ar5s

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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) al ula)i*n si#ple &8-&:B

In)eres) a#*un) C 1Prin ipal 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

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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) Re eip)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) Re eip)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.

&. 0. 6. 8. :. ;. =.

/a)e. Par)i ulars /ebi) Credi) Balan e Ini)ial Re#ar5s

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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 ) basi 3

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. 6. 8. :. ;. =.

Par)i ulars /ebi) Credi) Balan e Ini)ial Re#ar5s

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F!en $**ds re eip) in Ban5 ()*re R**# )!en LIM is rea)e. T!ere are a a$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. Insuran e *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.

L/C Opening

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L/C Lodgment

L/C Retirement

Ou)pu) *+ L-C - Head O++i e Rep*r).

&. 0. 6. 8. :. ;. =. >. ".

L-C Openin$ re$is)er Mar$inal /ep*si) ()a)e#en) Cus)*#er Liabili)y ()a)e#en) Bill Re$is)er PA/ re$is)er LIM ? LATR re$is)er L-C Balan e ()a)e#en) I)e# 9ise L-C lis) L-C *u)s)andin$ balan e rep*r) 1Curren) 9ise3

N.B. All rep*r) #us) !a<e da)e ran$e

C*n)en) *+ A*u !er.

&. 0. 6. 8. :.
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/a)e Par)i ular A#*un) A *un) Head C!ara )er 1/r. - Cr.3

Life Cycle of L/C:

'($orter 'ssue Ban) Ad*ising Ban) E+$orter

"egation Ban)

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!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
1 2 3 7 2 4 7 8
,e&uest -etter on -etter head/$-ain $a$er o% the a$$-icant .orro/er Loan a$$-ication %or( 1L-28 1L-40 5,e*ised6 Persona- "et /orth State(ent o% a-- Partners /ith $ro$ert# detai-s Bio- ata o% a-- Partners !o$# o% Partnershi$ eed 5,egistered/ "otarised6 E+tract o% 8eeting 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; A/c state(ent /ith PBL 5-ast one #ear6 - /here a$$-ica.-e A/c state(ent /ith other .an)s %or the -ast 1 #ear 5/here a$$-ica.-e6 <eri%ication re$ort on .usiness site o% the .orro/er .# the B8 : the ,8 5/here necessar#6 Photogra$h o% the Partners du-# attested .# the B8 Photogra$h o% s$ouse/guarantor5s6 i% an# - du-# attested .# the .orro/er : counter signed .# .ranch o%%icia- 5/here a$$-ica.-e6 Photogra$h o% the .usiness site/sho$ /ith dis$-a# o% Sign Board 5/here a$$-ica.-e6 <a-id Trade License <a-id =ther License5/here a$$-ica.-e6 <AT ,egd; !erti%icate 5/here a$$-ica.-e6 T'"/ Ta+ !-earance !erti%icate !redit ,is) >rading 5!,>6 Satis%action !erti%icate regarding transaction Branch Position 5Last 8onth6 "egati*e -ist o% Accounts

)artnership 0 0 0 0 0 0 0 0

Enclose *es +o

9 10 11 12 13 17

0 0 0 0 0 0 0 0 0 0 0 0
0 0

12 14 17 18 19 20 21 22 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 24 !onsent -etter o% the guarantor attested .# the Borro/er : etai-s

$ 0 0 0 0 0 0 0

B85/here a$$-ica.-e6 29 Persona- "et Aorth State(ents o% >uarantor /ith $ro$ert# 30 !o$# o% Sanction/Last rene/a- -etter 31 BLABs satis%action certi%icate regarding securit# / docu(ents in standard %or(at 5in case o% rene/a- / enhance(ent6 32 ocu(ents !on%ir(ation !erti%icate 33 e*e-o$erBs $ro%i-e

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37 !o$# o% 8e(orandu( and Artic-es o% Association o% the

32 34 37 38 39 70 71 72

e*e-o$er !o; %ro( the ,egistrar o% Coint Stoc) !o($anies : 1ir(s 5,CS!16 'rre*oca.-e >enera- Po/er o% Attorne# A--ot(ent -etter 5/here a$$-ica.-e6 A$$ro*a- as e*e-o$er %ro( co($etent authorit# ,EDAB (e(.ershi$ certi%icate 5i% an#6 Biana(a eed /ith 8one# ,ecei$t Tit-e ,e$ort on the -and .# the de*e-o$erBs -a/#er Aor) in $rogress re$ort "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 0 0 0

0 0 0 0 0

73

)apers/ documents relating to the collateral property if offered as security#

BLABs o$inion (entioning chain o% docu(ents 77 Tit-e eed9 "on-encu(.rance !erti%icate 72 !S9 SA9 ,S9 8utation9 !,9 DAL9 8ohanagar Parcha/BS 74 Photogra$h o% co--atera- a-ong/ith its schedu-e on the .ac) du-# signed .# the o/ner : certi%ied .# .ranch (anager 77 <a-uation certi%icate o% e+isting / $ro$osed co--atera-s 78 !o$# o% u$todate !it# !or$oration / 8unici$a- Do-ding Ta+

0 0 0 0 0 0 0 0 0 0 0 0 0 0

$aid ,ecei$t 5in case o% o/n $re(ises : /here a$$-ica.-e6

79 ?$to date rent recei$t 20 A$$ro*ed $-an and a$$ro*a- -etter %ro( ,AC?E / !oncerned Authorit# 5/here a$$-ica.-e6 21 ,ecent Sur*e# ,e$ort /ith S)etch 8a$ 22 !onsent -etter %ro( (ortgagor 5'n case o% third $art# >uarantee6 23 "=! %ro( the !oncerned Authorit# in case o% -ease ho-d

$ro$ert# 5/here a$$-ica.-e6

27 8utated Parcha %ro( re-e*ant >o*t-=%%ice %or -ease $ro$ert# 22 Per(ission %ro( re-e*ant Authorit# to (ortgage the -and

5Ahere A$$-ica.-e6 24 "=! %ro( re-e*ant authorit# regarding (ortgage 5in case o% Lease Do-d Pro$ert#/ /here a$$-ica.-e6 27 Encu(.rance !erti%icate /ith Search ,ecei$t5'n case o% rene//enhance(ent6;

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=11SD=,E BA"E'"> =PE,AT'="AL P,=!E ?,E

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