Lc 60 Days for Canada

Lc 60 Days Template for Canada

A 60-day Letter of Credit (LC) is a specialized financial instrument used in Canadian and international trade transactions, providing a secure payment mechanism with a 60-day payment term. This document, governed by Canadian banking regulations and international trade practices (particularly UCP 600), serves as a bank's guarantee to pay the seller/beneficiary upon presentation of compliant documents. It includes detailed specifications for payment terms, document requirements, and shipping conditions, while incorporating specific Canadian legal requirements and banking practices.

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What is a Lc 60 Days?

The LC 60 Days is a fundamental trade finance instrument used in Canadian and international commerce to facilitate secure trading relationships between buyers and sellers. This document type is particularly valuable when parties seek a balance between immediate payment security and extended payment terms. The 60-day payment term provides buyers with additional liquidity while ensuring sellers receive a bank-backed payment guarantee. The document operates under Canadian banking regulations and international standards (UCP 600), incorporating essential elements such as parties' details, payment conditions, document requirements, and shipping terms. It's commonly used in cross-border transactions where parties require a reliable payment mechanism with a moderate payment deferral period.

What sections should be included in a Lc 60 Days?

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

2. Date of Issue: Date when the LC is issued

3. Issuing Bank Details: Complete name and address of the issuing bank

4. Applicant Details: Full name and address of the party requesting the LC

5. Beneficiary Details: Full name and address of the party in whose favor the LC is issued

6. Currency and Amount: Specified currency and amount of the LC in both figures and words

7. Expiry Date: 60-day validity period with specific expiration date and place

8. Form of Presentation: Specification of required documents and presentation requirements

9. Payment Terms: Conditions and timing of payment including the 60-day term

10. Required Documents: List of documents required for presentation

11. Shipping Terms: Specific shipping requirements and Incoterms if applicable

12. Partial Shipments/Transhipment: Whether partial shipments or transhipment is allowed or prohibited

What sections are optional to include in a Lc 60 Days?

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

2. Red Clause: Include when advance payment to the beneficiary is required

3. Revolving Clause: Include when the LC needs to automatically renew under specified conditions

4. Tolerance Clause: Include when variation in quantity or amount is acceptable

5. Insurance Requirements: Include when specific insurance coverage needs to be specified

6. Special Conditions: Include when additional terms or conditions specific to the transaction are required

What schedules should be included in a Lc 60 Days?

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

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

3. Schedule C - Goods Description: Detailed description of goods or services covered by the LC

4. Appendix 1 - Document Checklist: Comprehensive checklist of all required documents for presentation

5. Appendix 2 - Bank Contact Details: Contact information for all relevant banking departments and personnel

6. Appendix 3 - Presentation Schedule: Timeline and deadlines for document presentation and processing

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

Canada

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions
Relevant Industries

International Trade

Manufacturing

Retail

Commodities

Agriculture

Mining

Oil and Gas

Textiles

Electronics

Automotive

Construction

Chemical Industry

Food and Beverage

Relevant Teams

Trade Finance

Treasury

International Banking

Credit Administration

Risk Management

Legal

Compliance

Operations

Finance

International Trade Operations

Supply Chain

Procurement

Relevant Roles

Trade Finance Manager

International Trade Specialist

Finance Director

Treasury Manager

Credit Manager

Trade Operations Officer

Documentary Credits Specialist

Import Manager

Export Manager

Compliance Officer

Risk Manager

Banking Relationship Manager

Chief Financial Officer

Supply Chain Manager

Procurement Manager

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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