Release of Guarantee

 

Dated: ………………..

Mr. X

Assistant Vice President

Credit Administration Department

Shamil Bank of Bahrain E. C. (Islamic Bankers)

5, Rajuk Avenue, Motijheel Commercial Area

P. O. Box No. 997, Dhaka

Dear Sir,

RE:     Y AUTOCARS LTD.

As requested please find enclosed herewith the draft letter to be signed by Bangladesh Autocars Ltd.

Should you have any further query please do not hesitate to revert back to us.

Thanking you.

Yours faithfully,

(Z)

Dated:

____________________________

____________________________

Shamil Bank of Bahrain E. C. (Islamic Bankers)

5, Rajuk Avenue, Motijheel Commercial Area

P. O. Box No. 997, Dhaka

(hereinafter referred to as the ‘Bank’)

Dear Sir,

RE:     RELEASE OF GUARANTEE NO. 864/CG6200039 DATED 15.01.2002

At the outset we convey our heartfelt gratitude for extending all out co-operation and support during the course of our business.

With appreciation we recall that at our request you furnished a bank guarantee No. LG/FIBB/003/98 dated 08.01.1998 in favour of Bangladesh Shilpa Rin Sangstha (BSRS) guaranteeing repayment of Tk. 1,75,85,000.00 (Taka one crore seventy five lac eighty five thousand) only to BSRS and thus enabled us to liquidate our liabilities with BSRS. Thereafter a Tripartite Agreement dated 03.01.1999 was executed between you, BSRS and ourselves (the ‘Agreement’) pursuant to which BSRS handed over all documents/papers relating to land measuring __________ (the ‘Land’), mortgaged earlier by us in favour of BSRS. In terms of the Agreement you were supposed to hold the said documents/papers for and on behalf of Investment Corporation of Bangladesh (ICB) and other consortium members under the Underwriting-cum-Advance Agreement dated 27.07.1981 and Supplementary Underwriting-cum-Advance Agreement dated 26.06.1982 till repayment of the outstanding underwriting-cum-advance.

Subsequently we decided to sell the Land to ACI Limited, a company incorporated under the relevant Companies Act, having its registered office at _________________ (the ‘Purchaser’). Since we had some outstanding liabilities with ICB and other consortium members, you agreed to deliver the documents/papers relating to the Land and the requisite Memorandum of Satisfaction upon furnishing you with an unconditional Bank Guarantee from a foreign bank for Tk. 1.05 crore only.

Accordingly Standard Chartered Bank (SCB) on behalf of the Purchaser issued an unconditional Bank Guarantee being No. 864/CG6200039 dated 15.01.2002 in your favour undertaking to make payment of Tk. 1.05 crore in 24 equal monthly instalment of Tk. 4,37,500.00 (Taka four lac thirty seven thousand five hundred) only and you handed over all documents/papers relating to the Land to the Purchaser. In the meantime we have liquidated our liabilities in full with ICB and other consortium member.

So far you have received 11 (eleven) instalment against the said guarantee from SCB on our behalf and Tk. 61,25,000.00 (Taka sixty one lac twenty five thousand) only is yet to be received against the said guarantee.

In the backdrop of this situation upon proposal of the Purchaser, we have agreed to re-negotiate the purchase price of the Land and have also agreed that if the Purchaser pay us Tk. _______________ (Taka _______________) only at a time, we shall accept the same as full and final settlement of the purchase price of the Land. Accordingly the Purchaser has paid us Tk. _______________ (Taka _______________) only as full and final settlement of the purchase price of the Land.

In the premises stated it has become necessary to return the original guarantee to SCB since the performance of obligation under the guarantee has already been performed by the Purchaser. You are therefore requested to return back the guarantee in original to SCB.

We hereby confirm and agree that we shall fully indemnify you from and against any expense, loss, damage or liability which you may incur as a consequence of returning the guarantee to SCB.

Thanking you.

Yours faithfully,

______________________

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