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Letter of agreement
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Letter of continuity
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Stock report duly signed by the hypothecator
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Letter of Hypothecation
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Insurance cover note.
4.3.4 Cash Credit Pledge Pledge/ Pawn mean bailment of goods as security for the payment of a debt or performance of a promise. (According to U/s-172, the contract act, 1872) a) Features of Pledge 1. Bailment of goods is always based on contract act. 2. Ownership of goods is not transferred. 3. Bailment as security of debt. 4. Possession of goods with the pledgee. 5. Head Office permission is a must. b) Documents Required •
Letter of pledge
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Stock report duly signed by the pledger.
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Invoice/ Cost memo of goods pledged.
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Insurance cover note with banks mortgage clause.
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Letter of disclaimer
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DP Note
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Letter of disbursement
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Letter of authority
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Letter of lien of stocks
4.3.5 Packing Credit In this type of credit system bank authority provides “Pre-Shipment Packing credit” for conventional goods (Jute, Leather and tea) and as well as for unconventional goods. In other hand, the credit provided for the shipment of goods for the exporter is known as “Post- shipment Packing Credit”. 4.3.6 LIM (Loan against Imported Merchandise) When an importer becomes unable to release his goods from customs house due to financial crisis, he may approach to his bank in writing for loan. This loan provided by the bank is known as Loan against Imported Merchandise (LIM). In this type of loan Head Office, approval is necessary. The