Cargo Bank Clause Samples
The Cargo Bank clause establishes the responsibilities and procedures related to the handling and management of cargo documents and payments through a designated bank. Typically, this clause outlines how shipping documents, such as bills of lading, are to be presented to the bank, and under what conditions the bank will release these documents to the buyer, often upon payment or acceptance of a draft. By specifying these processes, the clause ensures secure and orderly transfer of goods and funds, reducing the risk of non-payment or misdelivery in international trade transactions.
POPULAR SAMPLE Copied 1 times
Cargo Bank. Each Cargo supplied to the Refinery shall have an associated “Cargo Bank” with a reference number that matches the Cargo Number. The Cargo Bank shall be in the form of Appendix 14 and shall contain the following information:
(1) The Grade of Oil or Feedstock;
(2) The volume of Oil or Feedstock outturn to the Refinery (or the most accurately available alternative until the outturn becomes available, and updated accordingly) when the Cargo was Supplied;
(3) The Cargo Bank Differential;
(4) The contract month of NYMEX WTI futures used as the basis for calculating the Cargo Basis Differential, the “Cargo Bank Hedge-Month”;
(5) The monthly deemed Cargo Bank Withdrawals pertinent to that Cargo; and
(6) The closing balance on the Cargo Bank (equal to (2)) minus the sum of all (5) above).