Trust Receipt Agreement Sample

Banks generally do not hesitate to lend in trust. Because it is certain that the money will be repaid with interest as soon as the goods are sold. This is a win-win situation for both the bank and the borrower, as the bank receives money in the form of interest and the business earns money without having to invest in the first place. During the normal conduct of a commercial transaction, companies purchase goods for their inventory from sellers or wholesalers in order to resell them or manufacture goods to the consumer. These goods can be purchased locally or imported by other companies. When these companies receive the goods, they are also charged by the seller or exporter for the products purchased. If the company does not have the cash to pay the bill, it can obtain financing from a bank through a trust receipt. The cheapest source of financing, with a relatively flexible duration, is therefore proof of confidence. The source can be selected with the necessary cost-benefit analysis and submitting the necessary documents.

Terms of reception The Bank`s request to send us or other documents (hereafter referred to as „documents“) with respect to the goods or goods mentioned in them (hereafter referred to as „goods“), the purchase is financed by a letter that has been issued or is issued at our request, or is subject to an invoice for documents or another import loan granted to us by the Bank. documents and assets that we, the undersigned, acknowledge and approve, are subject to a commitment to the Bank that comes into effect on the date or date of such release:- 1. We undertake to retain on the Bank`s basis, as trustee of the Bank, all documents that have been provided to us now and in the future (with the goods to which they relate and the proceeds or sale). To avoid any doubt, if the shipping documents set aside contain less than the full set of bill of lading, we confirm that the conditions and all rights conferred on the Bank nevertheless apply. 2. We confirm that we have not received and will not receive any funding for other party`s goods. We also confirm that the goods would not be subject to any other guarantee, pledge or other charge in favour of a party other than the bank. We also guarantee that we will not be required to pay the purchaser of the goods and that the purchaser of the goods will not have an effective, future or conditional account right against us that could lead to a reduction in the proceeds of the sale to be paid on the merchandise.