Document background
The Revolving Letter of Credit is a specialized banking instrument used to facilitate recurring international trade transactions where the same parties engage in multiple transactions over time. This document, governed by Austrian law, establishes a credit facility that automatically reinstates after each utilization, eliminating the need for issuing multiple letters of credit for recurring shipments. It is particularly useful for businesses with regular trading cycles or ongoing supply relationships. The document incorporates key elements required by Austrian banking regulations, EU directives, and international banking practices (UCP 600), including credit terms, revolving mechanisms, documentation requirements, and bank obligations. This type of credit instrument offers efficiency and cost savings compared to multiple single-use letters of credit, while maintaining the security and risk management features of traditional documentary credits.
