The Acceptance Letter of Credit (LC) is a crucial trade finance instrument used in international commerce, particularly when parties seek to facilitate trade while managing cash flow and credit risks. This document, governed by Canadian law and international banking practices, provides a mechanism where the issuing bank commits to accept time drafts drawn by the beneficiary, effectively creating a banker's acceptance that can be discounted in the money market. The Acceptance LC is particularly useful in transactions where the buyer needs extended payment terms while providing the seller with a bankable instrument. It includes specific terms for acceptance, document requirements, presentation periods, and maturity dates, all structured to comply with UCP 600 rules and Canadian banking regulations. This type of LC is commonly used in commodity trades, capital goods transactions, and other international commercial dealings where deferred payment arrangements are preferred.

1. Issuing Bank Details: Complete name, address, and reference numbers of the issuing bank

2. Date and Place of Issue: The date and location where the Letter of Credit is issued

3. LC Number: Unique identification number of the Letter of Credit

4. Beneficiary Details: Complete name and address of the beneficiary (seller/exporter)

5. Applicant Details: Complete name and address of the applicant (buyer/importer)

6. Credit Amount and Currency: The maximum amount and currency of the Letter of Credit

7. Form of Credit: Specification that this is an Acceptance Credit

8. Drafts Specification: Requirements for the bills of exchange to be drawn

9. Document Requirements: List of required documents for presentation

10. Goods Description: Brief description of the goods or services covered

11. Shipment Terms: Shipping details including latest shipment date and destination

12. Expiry Date and Place: When and where the credit expires

13. Presentation Period: Time period within which documents must be presented

14. Acceptance Terms: Specific terms under which the drafts will be accepted

15. Governing Law Statement: Statement that the credit is subject to UCP 600 and Canadian law