90 Days Usance Lc for Australia

90 Days Usance Lc Template for Australia

This document is a specialized form of Letter of Credit governed by Australian law, providing for payment 90 days after presentation of compliant documents. It combines elements of traditional LC security with extended payment terms, making it particularly suitable for international trade transactions where deferred payment is desired. The document incorporates requirements under Australian banking regulations, international trade practices (UCP 600), and relevant provisions of Australian contract law, while ensuring compliance with anti-money laundering legislation and electronic transactions requirements.

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What is a 90 Days Usance Lc?

The 90 Days Usance Letter of Credit is a crucial trade finance instrument used in international commerce where extended payment terms are required while maintaining transaction security. This document is specifically designed for use under Australian jurisdiction and combines the security of a traditional Letter of Credit with a 90-day deferred payment mechanism. It provides protection for both exporters and importers by ensuring that payment will be made by a bank once compliant documents are presented, while allowing the buyer a 90-day period before actual payment is due. The document includes all necessary provisions required under Australian banking regulations, international trade practices (particularly UCP 600), and relevant domestic legislation, making it suitable for both domestic Australian banks and their international counterparts.

What sections should be included in a 90 Days Usance Lc?

1. Issuing Bank Details: Complete details of the bank issuing the LC, including name, address, SWIFT code, and reference numbers

2. Advice Bank Details: Details of the advising bank if different from the issuing bank

3. Beneficiary Details: Complete information about the beneficiary (seller/exporter), including full name, address, and bank account details

4. Applicant Details: Complete information about the applicant (buyer/importer), including full name and address

5. LC Value and Currency: The credit amount, currency, and any tolerance levels permitted

6. Validity and Expiry: Date of issue, expiry date, and place of expiry

7. Usance Terms: Specific details of the 90-day payment terms, including when the period begins to run

8. Documents Required: Comprehensive list of required documents for presentation

9. Shipment Terms: Details of shipment including latest shipment date, partial shipments, transhipment provisions

10. Presentation Terms: Period and conditions for document presentation

11. Payment Instructions: Detailed instructions for how payment will be made at maturity

What sections are optional to include in a 90 Days Usance Lc?

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

2. Back-to-Back Provisions: Include when the LC may be used as collateral for another LC

3. Revolving Terms: Include for LCs that automatically renew under specified conditions

4. Red Clause Provisions: Include when advance payment facilities are required

5. Confirmation Instructions: Include when confirmation by another bank is required or permitted

6. Special Conditions: Include any additional terms specific to the transaction

What schedules should be included in a 90 Days Usance Lc?

1. Schedule A - Commercial Invoice Requirements: Detailed specifications for the format and content of commercial invoices

2. Schedule B - Transport Document Requirements: Specific requirements for bills of lading or other transport documents

3. Schedule C - Insurance Document Requirements: Details of required insurance documentation and coverage

4. Schedule D - Product Specifications: Detailed description of goods, including quality, quantity, and packaging requirements

5. Appendix 1 - Document Presentation Checklist: Checklist for beneficiary to ensure complete document presentation

6. Appendix 2 - Amendment Process: Procedures and forms for requesting LC amendments

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

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

International Trade

Banking and Financial Services

Manufacturing

Agriculture and Food

Mining and Resources

Retail and Consumer Goods

Automotive

Textiles and Apparel

Electronics and Technology

Chemical and Pharmaceuticals

Construction Materials

Energy and Utilities

Relevant Teams

Trade Finance

International Banking

Credit Risk

Compliance

Legal

Treasury

Supply Chain

Finance

Operations

Documentary Credits

International Business Development

Relevant Roles

Trade Finance Manager

International Business Development Manager

Export Finance Specialist

Import Coordinator

Documentary Credits Officer

Trade Operations Manager

Compliance Officer

Credit Risk Manager

Treasury Manager

Banking Relationship Manager

Supply Chain Manager

Chief Financial Officer

Finance Director

International Trade Specialist

Documentary Collections 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

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