| UNION BANK OF SWITZERLAND
Haldenstrasse 118 3000 Bern 22 Switzerland
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Our ref. Your ref.
14th July 20__
HAPROGETS INC.
78 HT, Box 90,
Pleemload, Chicago
USA
Dear Sirs,
In accordance with Contract No. H-5/21 dated 28 May 20__ which you signed with Keiser AG, Geneva, for the supply of precision equipment you undertook to effect an advance payment in U.S. Dollars which represents 5% (five percent) of the contract value amounting to U.S. Dollars 1,800,000.00.
We, the Union Bank of Switzerland, hereby undertake to irrevocably and unconditionally, on your first demand, refund to you the paid advance payment amounting to U.S. Dollars 90,000.00 together with the annual interest at 7,5% (seven and half percent), in case the above-mentioned firm fails to fulfil its obligations stipulated in the contract.
This guarantee shall come into force on the date of your effecting the advance payment and be valid until the delivery has been effected but not later than 30 September 20__. In case the delivery is postponed for reasons depending on the supplier of the equipment this guarantee will be prolonged for the time of the delay in delivery.
This letter of guarantee should be returned to us immediately upon the delivery and our obligations under this letter of guarantee will cease on that date regardless of whether the guarantee has been returned to us or not.
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Yours very truly,
J.Guttenberg
J.Guttenberg
Union Bank of Switzerland
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PART II
SOME ASPECTS OF COMMERCIAL BANKING
Apart from dealing with exporters and importers, please note that banks also provide commercial services to clients in home banking. Here are some aspects of commercial banking.
OPENING A CURRENT ACCOUNT
Opening a current account for a company the bank is interested in certain details of the business, which include its address, legal status, its activities, connected companies etc. The bank also needs to know the names and signatures of the owners of the business and who has the right to sign cheques. Sometimes the company may want two signatures on each cheque.
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Messrs. Nolestru & Nolestru
67 Eastern Road, Birmingham
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Our ref. Your ref.
4 November 20__
South Bank
South bank House
Borough Road
London SE1 0AA
Dear Sir,
With reference to the telephone conversation of today’s date I would ask you to open a current account in the trading name of Messrs. Nolestru & Nolestru, 67 Eastern Road, Birmingham.
I enclose specimen signatures of the partners, either of whom may sign documents on behalf of the company. You may apply for references about my financial standing to Brawn & Co. banking with your branch. A cheque for 1,000.00 pounds and a paying-in slip are attached hereto.
Yours faithfully,
A.Putley
A.Putley
Finance Manager
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PROBLEMS ON STANDING ORDER
Standing order is an instruction of the payer to a bank to make regular payments to the payee on a particular day every month. Standing order is an instruction of the payer to a bank to make regular payments to the payee on a particular day every month. Standing orders are useful for regular outgoings such as rent, electricity, gas and telephone bills. They are also used for large monthly items over long periods such as mortgage payments or car purchase.
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Messrs. Nolestru & Nolestru
67 Eastern Road, Birmingham
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| Our ref. Your ref.
7 November 20__
South Bank
South Bank House
Borough Road
London SE1 0AA
Dear Sir,
Account No. 9661510
Our landlords, Thomson & Lartinet, inform us that by the present moment they have not received the money due for the two-months’ rent.
With reference to the above account we would kindly ask you to give your debit entries for £450.00 and £450.00 on 2 April and 2 May respectively – for the monthly rent payment by standing order established with your bank.
Your earliest reply will be appreciated.
Yours faithfully,
A.Putley
A.Putley
Finance Manager
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