Payment Against Lc for United Arab Emirates

Payment Against Lc Template for United Arab Emirates

This document governs the terms and conditions of payment through Letter of Credit (LC) under UAE law, establishing a secure method of payment in international trade transactions. It details the requirements, obligations, and procedures for all parties involved in the LC transaction, including the specific documentation required for payment release. The document incorporates relevant UAE banking regulations, commercial laws, and international banking practices (UCP 600), providing a comprehensive framework for LC-based payments while ensuring compliance with UAE legal requirements and banking standards.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Payment Against Lc

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Payment Against Lc?

The Payment Against LC document is essential for businesses engaged in international trade within or through the UAE. It provides a secure payment mechanism where the issuing bank guarantees payment to the seller upon presentation of compliant documents. This document type is particularly crucial in the UAE's trade-focused economy, where Letters of Credit are extensively used in cross-border transactions. It includes detailed provisions for document examination, payment terms, bank obligations, and compliance requirements under UAE law. The document ensures alignment with both local UAE banking regulations and international standards such as UCP 600, making it suitable for various trade scenarios while providing security and clarity for all parties involved in the transaction.

What sections should be included in a Payment Against Lc?

1. Parties: Identifies all parties involved: Applicant (Buyer), Beneficiary (Seller), Issuing Bank, and any Advising/Confirming Banks

2. Background: Context of the underlying commercial transaction and purpose of the LC

3. Definitions: Key terms used in the document, including banking, shipping, and trade terms

4. LC Terms and Conditions: Detailed terms of the Letter of Credit including amount, currency, and expiry date

5. Document Requirements: List of required documents for LC payment (e.g., commercial invoice, transport documents, certificates)

6. Payment Terms: Specific conditions and timing for payment, including examination period and payment process

7. Bank Obligations: Responsibilities and obligations of all banks involved in the LC transaction

8. Compliance Requirements: Standards for document compliance and examination under UCP 600

9. Force Majeure: Provisions for unforeseen circumstances affecting LC execution

10. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes

What sections are optional to include in a Payment Against Lc?

1. Transferability Clause: Include when the LC needs to be transferable to second beneficiaries

2. Back-to-Back LC Provisions: Required when dealing with back-to-back LC arrangements

3. Revolving Credit Terms: Include for recurring trade relationships with automatic LC renewal

4. Red Clause Provisions: When advance payment features are required in the LC

5. Standby Provisions: For LCs serving as security rather than payment mechanism

6. Islamic Banking Compliance: Required when the LC must comply with Sharia principles

7. Confirmation Requirements: When LC confirmation by another bank is required

What schedules should be included in a Payment Against Lc?

1. Schedule 1 - Document Checklist: Detailed checklist of all required documents and their specifications

2. Schedule 2 - Fee Schedule: Breakdown of all banking charges, fees, and commission rates

3. Schedule 3 - Timeline Schedule: Key dates and deadlines for document presentation and payment

4. Schedule 4 - Communication Procedures: Protocols for communications between all parties

5. Appendix A - Standard Forms: Templates for required documents and declarations

6. Appendix B - Bank Details: Complete banking information for all parties involved

7. Appendix C - Trade Terms: Applicable Incoterms and trade terms definitions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

International Trade

Banking & Financial Services

Manufacturing

Import/Export

Commodities Trading

Retail

Oil & Gas

Construction

Automotive

Agriculture

Textiles

Electronics

Mining

Pharmaceuticals

Relevant Teams

Legal

Finance

Treasury

International Trade

Banking Operations

Risk Management

Compliance

Supply Chain

Documentary Credits

Commercial Operations

Relevant Roles

Trade Finance Manager

International Trade Specialist

Documentary Credit Manager

Treasury Manager

Finance Director

Compliance Officer

Import/Export Manager

Banking Operations Manager

Trade Operations Officer

Risk Manager

Commercial Director

Legal Counsel

Credit Controller

Supply Chain Manager

Chief Financial Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Application Letter For Lc

A UAE-compliant formal application to a bank requesting the issuance of a Letter of Credit, governed by UAE banking regulations and international UCP 600 rules.

find out more

Loan Against Letter Of Credit

UAE-governed loan agreement securing finance against a Letter of Credit, compliant with UAE banking and commercial laws.

find out more

Collateral For Letter Of Credit

A UAE law-governed security agreement establishing collateral arrangements to secure Letter of Credit obligations, compliant with UAE banking regulations and commercial law.

find out more

180 Days Usance Lc

A UAE-governed financial instrument providing 180-day deferred payment terms in international trade, backed by bank guarantee and regulated under UAE commercial law.

find out more

Export Lc Discounting

UAE-governed agreement for discounting export Letters of Credit, establishing terms between financial institutions and exporters for early payment against LCs.

find out more

Cash Collateralized Letter Of Credit

UAE law-governed agreement for issuing Letters of Credit backed by cash collateral, establishing terms between bank and applicant under UAE Commercial Transactions Law.

find out more

Application For Letter Of Credit

A UAE-compliant formal application to a bank requesting the issuance of a Letter of Credit for securing international trade transactions, governed by UAE Commercial Law and UCP 600.

find out more

Letter To Bank For Reversal Of Amount

A formal request letter to UAE banks for reversing a transaction amount, complying with UAE banking regulations and providing necessary transaction details.

find out more

Contour Letter Of Credit

A UAE law-governed digital Letter of Credit issued via the Contour platform, providing secure payment guarantee in international trade transactions.

find out more

Loan Against Irrevocable Lc

UAE law-governed financing agreement for loans secured against irrevocable Letters of Credit, incorporating UAE banking regulations and commercial code requirements.

find out more

Usance Lc Discounting

UAE-governed agreement for discounting Usance Letters of Credit, facilitating trade finance between banks and exporters under UAE banking regulations.

find out more

Transferring Bank In Lc

UAE-governed document establishing terms and conditions for Letter of Credit transfers through a Transferring Bank, compliant with UAE banking laws and regulations.

find out more

Sight Lc And Usance Lc

UAE-governed Letter of Credit document for international trade, offering either immediate (Sight) or deferred (Usance) payment terms under UAE law and UCP 600.

find out more

Revolving SBLC

UAE law-governed Revolving SBLC agreement establishing an automatically reinstating credit facility, compliant with UAE banking regulations and international standards.

find out more

Payment Terms Dlc

UAE-governed payment terms document for Documentary Letters of Credit, incorporating local banking regulations and international practices.

find out more

Payment Against Lc

UAE-governed document establishing terms and conditions for Letter of Credit payment arrangements in international trade transactions.

find out more

Non Transferable SBLC

A UAE-governed banking instrument providing payment guarantee from a bank to a specific, non-transferable beneficiary, subject to defined conditions.

find out more

Non Transferable Letter Of Credit

A UAE-governed banking instrument that provides payment security in international trade while explicitly prohibiting transfer of drawing rights to third parties.

find out more

Non Operative SBLC

A UAE-governed standby letter of credit serving as a bank-issued payment guarantee in international trade, compliant with UAE Federal Laws and international banking practices.

find out more

Negotiation Bank In Lc

UAE-governed agreement establishing terms for Letter of Credit negotiations between banks and beneficiaries, aligned with UAE banking laws and international practices.

find out more

Negotiable Lc

A UAE-governed banking instrument that provides payment security in international trade, combining local UAE banking regulations with international standards for letter of credit transactions.

find out more

Mixed Payment Lc

A UAE-law governed trade finance instrument combining immediate and deferred payment mechanisms for international trade transactions.

find out more

Letter Of Credit For Domestic Transactions

A UAE-governed banking instrument that guarantees payment for domestic transactions between UAE-based parties, subject to the presentation of compliant documents.

find out more

Letter Of Credit Discounting Charges

A UAE-governed banking document that specifies all charges and terms related to Letter of Credit discounting services.

find out more

Letter Of Credit Available With

A UAE-governed banking instrument that specifies the nominated bank where a Letter of Credit is available and how it can be utilized in international trade transactions.

find out more

Letter For OverFacility

A UAE-governed banking document that establishes an overdraft facility agreement between a bank and customer, specifying credit limits and terms under UAE banking regulations.

find out more

Lc In Purchase Order

A UAE-governed financial instrument combining Letter of Credit requirements with purchase order specifications, providing payment security and transaction details under UAE commercial law.

find out more

Irrevocable Non Transferable Letter Of Credit

A UAE-governed banking instrument providing guaranteed payment in international trade, issued as an irrevocable and non-transferable commitment under UAE Commercial Code and UCP 600.

find out more

Irrevocable Lc Payment Terms

UAE-governed payment terms document for irrevocable letters of credit, establishing secure international trade payment conditions under UAE law and UCP 600.

find out more

Direct Pay Standby Letter Of Credit

A UAE-governed banking instrument providing irrevocable payment commitment upon document presentation, combining local banking laws with international practices.

find out more

Cumulative Revolving Letter Of Credit

UAE-governed trade finance instrument establishing an automatically reinstating credit facility for multiple drawings, compliant with UAE banking laws and UCP 600.

find out more

Credit Card Clearance Letter

A UAE-compliant formal confirmation letter issued by a bank declaring full settlement and closure of a credit card account with no outstanding obligations.

find out more

Freely Negotiable Letter Of Credit

A UAE-governed banking instrument that provides a secure payment mechanism in international trade, allowing for negotiation by any bank worldwide.

find out more

Verbiage Letter Of Credit

A UAE-governed banking instrument that guarantees payment in international trade transactions, subject to UAE Commercial Code and UCP 600 rules.

find out more

Transferable Lc At Sight

A UAE-governed financial instrument allowing transfer of letter of credit rights with payment at sight, facilitating secure international trade transactions.

find out more

Straight Letter Of Credit

A UAE-governed banking instrument providing secure payment guarantee in international trade transactions, subject to UAE Federal Law and UCP 600.

find out more

Small Business Letter Of Credit

A UAE-governed Letter of Credit document providing payment security for small businesses in international trade transactions, complying with UAE banking laws and UCP 600.

find out more

Loan Facility Letter

A UAE-governed document issued by a financial institution outlining loan facility terms and conditions, compliant with UAE banking and commercial laws.

find out more

Non Operative Letter Of Credit

A UAE-governed preliminary Letter of Credit that outlines terms and conditions but remains inoperative until specific conditions are met, following UAE banking regulations and UCP 600.

find out more

Letter Of Credit In Logistics

A UAE-governed banking instrument that guarantees payment in international trade transactions upon presentation of compliant logistics and shipping documents.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now