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The SBLC Backed Buyers Credit agreement is utilized when a corporate entity requires financing for its business operations, typically for import transactions or capital expenditure, and can obtain an SBLC from a bank as security. This document is particularly relevant in the Pakistani market where cross-border financing needs to comply with local banking and foreign exchange regulations. The agreement comprehensively covers the credit facility terms, conditions precedent, drawdown mechanics, and the SBLC security arrangement. It ensures compliance with Pakistani legislation including the Banking Companies Ordinance, Foreign Exchange Regulation Act, and State Bank of Pakistan regulations. The document is structured to protect the interests of both the lending bank and the borrower while maintaining the necessary regulatory compliance and risk management framework.

1. Parties: Identifies all parties to the agreement including the borrower, lending bank, and SBLC issuing bank

2. Background: Sets out the context of the facility and the purpose of the SBLC backed buyer's credit

3. Definitions and Interpretation: Defines key terms used throughout the agreement and interpretation rules

4. Facility Amount and Purpose: Details the credit amount, currency, and permitted use of the facility

5. SBLC Terms and Conditions: Specifies the terms of the Standby Letter of Credit including validity, format, and issuing bank obligations

6. Conditions Precedent: Lists all conditions that must be satisfied before the facility becomes available

7. Drawdown Mechanics: Procedures and requirements for utilizing the facility

8. Interest and Fees: Details of interest calculation, payment periods, and all applicable fees

9. Repayment Terms: Specifies repayment schedule, prepayment provisions, and payment mechanics

10. Borrower Representations and Warranties: Standard and transaction-specific representations and warranties

11. Borrower Covenants: Positive and negative undertakings of the borrower

12. Events of Default: Lists circumstances constituting default and consequences thereof

13. SBLC Demand Procedures: Process for making demands under the SBLC in case of default

14. Governing Law and Jurisdiction: Specifies applicable law and courts having jurisdiction

15. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability