The ordered / natural or legal person, the bank’s customer or correspondent (the foreign bank or the foreign external entity) who issues the letter of guarantee according to his order and instructions.  The beneficiary / the entity in whose name or for the benefit of the letter of guarantee is issued. Letters of guarantee can be issued in the following cases:

According to an internal request for the benefit of an entity within Iraq. According to an internal request for the benefit of an entity outside Iraq. According to an external request for the benefit of an entity inside Iraq. According to an external request for the benefit of an entity outside Iraq.

Procedures: –

 An application for issuing a letter of guarantee is submitted by the ordering authority, according to the form for issuing the letter, after it has been filled with the following data:

 The name of the principal.

The amount of the letter of guarantee.

Duration of the letter of guarantee.

The beneficiary.

The purpose of the letter of guarantee.

The guarantor. In this case, the principal is required to submit the name of the concerned guarantor and affix it in the place prepared for that on the form in the following cases:

If the principal does not have specific allocations for issuing the letter of guarantee.

If the principal has used all his prescribed assignments.

If it is not possible to accept the request to issue a letter of guarantee to him with special approval for any reason related to his financial and administrative situation.

If the General administration has stipulated, according to the facility approval form, the need to issue a letter of guarantee to guarantee a specific person or entity.

Securities: The bank may request cash or in-kind insurance in return for issuing the letter of guarantee to document the obligation arising from it. This may be in the form of cash security in the full amount of the letter or a specific percentage therein or a larger percentage of the letter’s amount, a mortgage of shares or bonds, a deposit of any movable funds, or a mortgage shares or bonds or deposit any movable money or mortgage real estate, or that the insurance be a waiver of the matter’s right with the beneficiary, and this is done by the branch based on what is proven in the bank facilities approval form, and the case depends on it separately.

The signature of the order shall be obtained on the form and in the designated place, confirming the correctness of the information included in the fields mentioned above.

The branch manager agrees to issue a letter of guarantee according to the conditions contained in the banking facilities approval form, or according to his powers stipulated in the banking facilities form, or he issues the letter in accordance with the accreditation of the customer who has a credit dedicated to issuing letters of guarantee and with a guarantee, provided that the support of the head of the division is obtained on the same form that the amount has been reserved from the customer’s allocation and not the guarantor of other cases. The approval of the general administration can be obtained in specific cases that are beyond the authority of the branch manager and for limited cases.

Each letter of guarantee is allocated a special expression upon its issuance and a serial number is reserved for it. The guarantee forms contain serial numbers, and the letter number is included in all papers related to the letter, documents, and application form. The contract of the letter of guarantee for the form is regulated and obtained by the signature of the order and the sponsor if any and the fee of the character is met.

The required documents:

They are the official documents of the requester of the letter (the order) and official books, if any, which support his need for a letter of guarantee, if any, issued by the beneficiary, explaining the details of the required letter of guarantee in terms of amount, type of letter, purpose, and duration of the letter.

Legal framework and conditions:

They are the same conditions mentioned in the form signed by the requester of the letter, as well as those established in the valid Trade Law in force No. (30) Of 1984, as amended as well as those agreed between the order, the beneficiary, and the bank in terms of the length of the communication, the date of the entitlement, and the failure to guarantee the conditions.

Standard service time:

It is the time taken since submitting the application, the nature of the letter, the insurance provided, its type, and whether it is within the authority of the branch manager or the authority of the general administration. All of which determine the time needed to accomplish the letter.

Fees:

The fees and commissions prescribed in the bank’s price table are met, which vary in the duration and amount of the letter.