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Frequently Asked Questions - Topics - Credit

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Answers to Frequently Asked Questions are provided in this section. 

The first posting of FAQs is in August.  The last posting of FAQs is in the latter part of January, after bidders are registered to participate in the Auctions.   From that point, questions and answers are emailed directly to Registered Bidders and are not posted to the BGS Auction website.  Questions that are not from Registered Bidders or their advisors are answered strictly on a best efforts basis.

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Application (7)
Association and Confidential Information Rules (49)
Auction Rules (1)
Credit (9)
Data (9)
General (24)
Pre-Auction Security (7)
Rates (2)
SMA Section 15.9 (2)
Supplier Master Agreement  (7)



Will the EDCs review a draft credit instrument prior to our bank issuing such document?

The EDCs do not provide courtesy reviews of draft... Read Answer



Is it acceptable to change Paragraph 4 of the Pre-Auction and Post-Auction Letter of Credit so that the bank transfer funds later than what is contemplated by this paragraph?  

With its Part 2 Application, a Qualified Bidder is required... Read Answer



Which party is responsible for paying any transfer fees should the post-auction letter of credit be transferred to a different beneficiary?

Any and all transfer fees, expenses and costs are borne by... Read Answer



What is meant by the term “third party” in Section 6 of the Part 1 Application?  Is a parent company considered a “third party” for purposes of relying on the financial standing of a guarantor?

Section 6 of the Part 1 Application requires the Applicant... Read Answer



Will previously acceptable modifications to the letters of credit remain acceptable this year?

The lists of acceptable modifications to the letters of... Read Answer



Can we propose modifications to the Letter of Reference?

Three (3) samples for the letter of reference will be made... Read Answer



We proposed modifications to the letters of credit in a previous auction.  Do we need to resubmit these modifications or do you keep previously proposed modifications for reconsideration in the current BGS Auction process?  

If the modifications that you previously proposed appear in... Read Answer



Are bidders allowed to submit a Letter of Reference as part of their financial guarantee?

A Letter of Reference in addition to the Pre-Bid Letter of... Read Answer



If we become a winning bidder, can we include the ICRT Table within the Post-Auction Letter of Credit or should we expect to amend the amount of the Post-Auction Letter of Credit as the ICRT declines over the term of the contract?

Winning BGS-RSCP bidders that choose to meet the credit... Read Answer


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