b) Forced Lim Account

Immediately after lodgment of documents the branch incumbent and concerned dealing official shall vigorously persue importers far retirement of bills. PAD should not remain outstanding fare more than 30 days from the date of lodgment on as per norms.

If the party fails to retire the documents within 30 days or within the date of arrival of ship which ever is earlier the branch should sent the documents for clearance the goods. Other formalities in connection with the forced LIM A/C will be the same as in the case of LIM A/C created on importer's request.

No further L/C's of the party for whom the bank was forced to clean the consignment and the party failed to take delivery of the goods within the time specified below under the head disposal of LIM stocks should be opened without prior approval from Head Office even if the same is within the discretionary power of branch Manager.

5.3 DISPOSAL OF LIM STOCKS

a) The LIM liability should be adjusted within a maximum period of 45 days from the date of storage for commercial importer and 60 days for industrial importers. (It may very as per circular)

b) Part delivery against payment may also be allowed if so desired by the party to clear the LIM liability within the aforesaid time, after recovery margin over the landed cost if possible, but such payment should be proportionate with outstanding LIM liability taking into account the interest, go down rent and other charges up to eventual date of final delivery. This should be so arranged that with the last delivery the entire LIM liability is fully adjusted. Special care should however to taken to protect bank's interest in case where all the packets / bundles are not of equal size quality and price.

c) Additional 30 days may be allowed to both commercial and industrials, if    so approached by them for final adjustment. In the event of importer's failure to lift the goods on payment of bank's dues in full even within the extended period of 30 days, the following steps shall be taken by the branch incumbent :

i) Final notice shall be issued on importer's giving 15 days time for payment.

ii) Incase on response is received from importer legal notice shall be served on the party giving another 15 days time for payment.

iii) In case the concerned borrowers do not liquidate the liability within the stipulated time limit, but come forward with prayer for further time, in such cases branch incumbents may allow further 30 days time only provided he is satisfied that importer will be in a position to repay the outstanding dues within the extended period under advice to Head Office.

iv) In case the party fails to liquidate their liability within the extended time granted as mentioned in the proceeding paras the goods should be disposed off in public auction.

v) For disposal of the import consignment, a Disposal Committee shall be constituted by Head Office on receipt of a report form Branch incumbent that the consignment need to be disposal off by public auction as per Head Office standing instruction. The Disposal Committee shall be concerned with the Head Office  as Chairman, Manager of main Branch and Manager of concerned branch or as decided by the H.O.

vi) A notice for public auction of the goods, should be published by the Disposal Committee at least in two National Dailies (one Bengali and English). In all cases of public auction required earnest money shall be 5% to be fixed by Head Office of the quoted amount in the farm of Demand Draft / Payment Order. This condition must invariably be mentioned in the public notice inviting quotations for sale of import consignments. The Disposal Committee should open the tenders and select the highest bidder.

vii) The committee may also reject the highest offer if the price quoted is less than the normal market price and shall immediately call for fresh tenors.

viii) It there be any shortfall after disposal of goods, a case should be filed for the recovery of the short full amount, in the court of law immediately against the importer / guarantor concerned under intimation to Head Office.

ix) The branches shall invariably send monthly LIM statement on the prescribed form duly filled in as usual to Head Office (ID)

5.4   LETTER OF TRUST (LTR)

By executing the standard letter of trust (or trust receipt) the customer acknowledges receipt of the documents of tittle to the goods, as the case may be and agrees to hold them and the relative goods, when delivery thereof is taken by him, in trust as agents for the bank until the goods are sold or used for the express purpose for which they were released to him. The customer also undertakes to keep the transaction separate and assign and deposit with the bank the sale proceeds immediately realization but in any case not later than time period stipulated in the letter. Further, the customer undertakes to keep the goods insured and in the event the goods or may part thereof cannot be used by him for the declared purpose or on demand being made by the bank for the return of the documents / goods, he promised to restore the goods or documents to the bank's custody. The trust receipt, thus, enables the importer customer to take re-delivery of the documents pledged to the pledge bank.