Shipside Bond Sample Clauses
A Shipside Bond clause requires the provision of a financial guarantee or security at the point where goods are transferred from ship to shore. Typically, this bond is posted by the party receiving the goods to ensure payment of duties, taxes, or compliance with customs regulations before the cargo is released. For example, importers may need to provide a shipside bond to customs authorities to cover potential liabilities associated with the shipment. The core function of this clause is to protect the interests of customs or other regulatory bodies by ensuring that all legal and financial obligations related to the cargo are met before it leaves the port, thereby reducing the risk of non-payment or regulatory violations.
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Shipside Bond. The Bank may, from time to time, at the request of the Borrower, issue one or more Shipside Bond(s). In such event, each such Shipside Bond shall be considered an Obligation under this Agreement for purposes of Section 2.4 and shall reduce the amount available to the Borrower for the issuance of Letters of Credit by the amount of such Shipside Bonds. Nothing contained in this Agreement nor any past or future action on the part of the Bank shall be construed as creating any obligation on the part of the Bank to issue a Shipside Bond.