Guarantees/Standby LC normally issued for a limited period but still it can be extended for longer terms.
At the time of creating a Guarantee/Standby LC, this extension can be handled by the corporates using Auto extension details. This 'Auto Extension' is used to automatically extend the contract expiry date as per the Auto extension schedule.
In RIVO, you can achieve this through Auto extension details screen. This will not be applicable for the contracts when the type of expiry is Unlimited.
1) Auto Extension is
The below list of values populated in the Auto Extension field,
a) Same date one year later.
b) for below number of calendar days after latest Expiry Date.
c) Using specific extension clause.
a) Same date one year later -> Auto extended for one year from the current expiry date.
b) for below number of calendar days after latest Expiry Date -> Need to specify the number of days in the Number of Days field which will considered for the latest expiry date.
c) Using specific extension clause -> Any specific clause to be given in the Specific Extension Clause field.
2) Final Expiry Date For Auto-Extension
This is the last date for the Auto extension after this date no auto extension will be done for Guarantee/Standby LC transaction.
3) Non-Extension Notifications Details
Any information's related to the non-extension of the Guarantee/Standby LC transaction should be given here.
4) Days Before Non-Extension Notification is to be sent
The non-extension notification will be communicated to the beneficiary before the number of days specified.
Sample screenshot for Auto Extension Details in Standby LC transaction,