Trust Receipt
All information is required unless stated.
Date: / /
Your company details
Company name
Contact person Contact number
Goods details
BL/AWB No Vessel/Flight
Quantity & Description of Goods Marks & Numbers
Value of Trust Receipt Supplier name
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Terms and Conditions for Trust Receipt
In co nsideration of the Bank at our request releasing to us shipping or other documents
(hereinafter referred to “the Documents”) relating to goods or the goods thereunder
(hereinafter referred to as “the Goods”), purchase of which is financed under a letter of
credit issued or to b e issued at our application or is subject to a documentary collection bill
or otherwise under a n import loan granted by the Bank to us, which documents and goods
we, the undersigned, acknowledge and agree a re subject to a pledge in the Bank’s favour
coming into existence at or before the time of such release:-
1. We hereby undertake to hold any and all Doc uments so handed over to us now and
hereafter from time to time (together with the Goods to which they relate and the
proceeds or sale) on trust for the Bank as the Bank’s trustee(s). For the avoidance of doubt,
where the shipping 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 the Bank’s rights
conferred herein shall nevertheless apply.
2. We confirm that we have not obtained and shall not obtain financi ng for or in respect of
the Goods from any other party. We further confirm that the Goods would not be subject to
any other security, lien or encumbrance in favour of an y party except the Bank. we also
warrant that we are not indebted to the buyer of the Goods and the buyer of the Goods
does not have any actual, future or contingent right of set-off against us which may lead to
a reduction of the proceeds of sale payable on the Goods.
3. We irrevocably undertake to execute such bill of exchange, promissory note ,
acknowledgement of trust receipt and/or any other documents that may be required by the
Bank any time after our receipt of the Documents and/or Goods. Without prejudice to the
foregoing, the Bank is irrevocably authorised by us to draw a bill of exchange on us for any
amount due to the Bank hereunder.
4. Without prejudice to the genera lity of any other provision herein, we confirm that in
respect of every release of the Documents and/or the Good s pertaining to a transaction, we
are deemed to have executed a separate Trust Receip t pertaining to that transaction in the
Bank’s favour on terms and conditions app earing herein as the same may from time to time
be varied or amended.
5. We agree that as documents are released to us hereunder, we are deemed to have
accepted the documents as well as wa ived all our rights to reject the do cuments on any
ground. Without prejudice to the generality of the foregoing, we agree to waive all
irregularities, non-conformities and discrepancies as regards the value, numbers, marks,
contents, weight, quantity and quality of the Goods under a ny contractual arrangement we
may have with the supplier thereof, and we further agree that the Bank may pay or accept
as a complying presentation any draft and/or other documents received by the Bank with
respect to the Goo ds tendered under letter of credit/ pursuant to a c ollection
notwithstanding any discrepancy, non-conformity or irregularity in the draft or documents
and/or whether or not all the documents required under the letter of credit are presented,
which discrepancy, non-conformity, irregularity and/or failure to present the requisite
documents shall be deemed to have been irrevocably waived by us. Such discrepancy or
irregularity shall be deemed to include the delay in such tender or presentation of any
documents and/or drafts beyond what is permitted by the terms of the letter of credit or
the collection.
6. We hereby undertake to land, store, hold and deliver to buyers to whom we are not
indebted or under any liability the Goods and receive the proceeds of sale a s trustee(s) for
the Bank and as agents on the Bank’s behalf and not otherwise and on sale of all or any of
the Goods to remit to the Bank t he entire proceeds of sale or any part p ayment promptly
when received without any set off or deduction whatsoever and we hereby irrevocably
confirm that the Bank may receive from the buyers directly the purchase monies for the
Goods. Pending remittance of the sale proceeds to the Bank, we shall hold the same in a
designated account on trust for the Bank without mixing such proceeds with our own
monies, to be timeously applied in payment against such of our indebtedness to the Bank as
may arise out of or in connection the letters of credit, collection bills or the Goods.
We agree to furnish the Bank with all necessary particulars to enable the Bank to apply
any proceeds of sale received by us to the relevant draft in each case. In the event that
the Goods or the originals of the Bills of Lading / shipping documents have not been
received by us on the date hereof, all such goods and/or documents shall upon receipt
by us b e held by us subject to the terms herein, and sha ll unless contrary instructions
have been received from the Bank, be deemed to have been delivered by us to the
Bank and immediately thereafter delivered and released by the Bank to us under and
subject to this Trust Receipt. Without prejudice to the generality of the foregoing, we
undertake to act as agent for and on the Ba nk’s behalf for the purpose of effecting
discharge, clearance, carriage, storage inspection, insurance and/or sale of the Goods.
7. We will pay all freight warehouse dock transit and other charges rent and all other
costs of and inc idental to the Goods including but not limited to charges incurred in
connection with the discharge, clearance, carriage, storage, inspection, insurance
(including any premium) and/or sale of the Goods as well as import duty and other
taxes thereof, if any. We also agree to take all steps towards the recovery of any losses
or damages suffered by the Bank in respect of the Goods, in cluding, if required by the
Bank, commencing proceedings in our own name or in our joint nam es and to
indemnify the Bank against the same.
8. Without prejudice to the other provisions herein, we agree to obtain delivery of and
to warehouse the Goods on the Bank’s behalf and to hand to the Bank upon the Bank’s
demand all warehouseman receipt, attornment or such document evidencing title or
right of possession to the Goods. We shall keep the Bank informed at all times of any
movement of the Goods from the place of storage. We further a gree to comply with
any of the Bank’s instructions as to the means or manner of transporting, warehousing
and storage of the Goods. In case the Good s shall be stored in the warehouse owned
by us with the Bank’s consent we undertake to keep the Goods separately from other
goods, and to place them in the particular space allotted to the Bank.
9. We shall permit, p rocure permission for the Bank, or the Bank’s agents or nominees
to inspect the Goods on one or more occasions and to take possession thereof.
10. We will not process, manu facture or commingle the Goods or permit the same to
be processed or altered without the Bank’s prior written consent.
11. We will forward to the Bank copies of our sales invoices for the Goods forthwith on
the same being issued showing the names of the buyers and the total sale price in each
case.
12. We will not sell or otherwise dispose of any of the Goods on deferred payment
terms (other than normal trade credit) or for any non monetary consideration or for
less than current market value without the Bank’s prior written consent.
13. We undertake that all transactions will e ach be k ept separate from any other
transaction and that the Documents, the Goods, the proceeds of any sale and all
insurance monies shall be kept separate and distinct from any other documents,
goods, proceeds of sale or insurance monies relating to or arising from any other
transaction.
14. We undertake to forthwith return to the Bank immediately on demand at any time
(whether or not the purpose set out above shall have been completed) the
Documents, any other documents receiv ed by us in exchange or substitution for them
and the Goods represented thereby and to comply promptly and fully with any
instructions which the Bank may give as to the manner of dealing with the Goods or
any of them or the removal of them to, or storage of them at, any place.
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