urgent -pls help

Although the matter is procedural, indemnity bond is executed to protect the bank from possible from fraud and related financial irregularities by the company. The bank is advancing money on the basis of the emails, fax etc from your clients. The bank is exposed to credit risk on account of such dealings, In case of any event occuring the bank can claim the loss from your company based on the indemnity bond executed on behalf of it.

Yes the indemnity bond is executed to secure the liability of the bankers. The company in no circumstances can hold bank responsible for any instruction issued by them. Incase of any fraud , bankers can help you to track the transaction executed by the representatives on behalf of the bank. But just to caution you, avoid transaction via fax mode as I have personally witness frauds of huge amount sweeping from one bank account to another.

As far as emails/fax are concerned make sure that the payment documents are despatched to the bank on the very day or latest the next day, so that bankers have enough time to verify the signatures on such documents

This document should not be taken just in the libral and casual way. By signing this deed/agreement/bond, you are understaking to the bank that in case of any fradulant mail/fax pertaining to your account receives the bank and it makes payment accordingly and at some later stage, it comes to reveal that the mail/fax was false then bank is not liable for any action rather you are responsible. You shuld develope this system full proof before signing it.