SBLC Transferable for Canada

SBLC Transferable Template for Canada

A Transferable Standby Letter of Credit (SBLC) document governed by Canadian law is a sophisticated banking instrument that provides a financial guarantee which can be transferred from the original beneficiary to another party. The document outlines the terms and conditions under which the bank will make payment, the transfer mechanisms, and the rights and obligations of all parties involved. It incorporates relevant Canadian banking regulations and international banking practices, particularly focusing on compliance with federal banking laws and provincial securities regulations where applicable. The document includes specific provisions for transfer procedures, drawing conditions, and compliance requirements under Canadian anti-money laundering legislation.

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What is a SBLC Transferable?

The Transferable SBLC document is essential for transactions where the original beneficiary needs the flexibility to transfer their rights under the letter of credit to another party. This type of instrument is commonly used in Canadian and international trade transactions, project financing, and complex commercial arrangements. The document's structure follows Canadian banking regulations and international banking practices, incorporating specific provisions required by Canadian federal and provincial laws. A Transferable SBLC is particularly valuable in scenarios where intermediaries are involved in the transaction chain or where the original beneficiary may need to assign their rights to suppliers or subcontractors. The document includes comprehensive terms covering transfer mechanisms, drawing conditions, compliance requirements, and risk mitigation measures, ensuring alignment with Canadian anti-money laundering legislation and banking regulations.

What sections should be included in a SBLC Transferable?

1. 1. Parties: Identification of the Applicant, Issuing Bank, Original Beneficiary, and any nominated bank

2. 2. Background: Context of the SBLC issuance, including the underlying transaction it supports

3. 3. Definitions: Key terms used throughout the document, including banking and trade finance terminology

4. 4. SBLC Amount and Currency: Specification of the credit amount and currency of payment

5. 5. Transfer Terms: Conditions and procedures for transferring the SBLC to new beneficiaries

6. 6. Validity Period: Effective date, expiry date, and any auto-extension provisions

7. 7. Drawing Conditions: Required documents and conditions for making a claim under the SBLC

8. 8. Transfer Restrictions: Limitations on number of transfers, minimum/maximum amounts, and prohibited transfers

9. 9. Fees and Charges: All applicable fees for issuance, transfer, and amendment of the SBLC

10. 10. Governing Law and Jurisdiction: Specification of Canadian law as governing law and jurisdiction for disputes

11. 11. Notices: Communication procedures and contact details for all parties

12. 12. Amendment Procedures: Process for modifying the SBLC terms

What sections are optional to include in a SBLC Transferable?

1. Partial Transfers: Include when the SBLC can be transferred in parts to multiple beneficiaries

2. Electronic Presentation: Include when electronic presentation of documents is permitted

3. Counter-Guarantees: Include when there is a counter-guarantee arrangement with another bank

4. Special Instructions for Transfer: Include when there are specific requirements for transfer procedures

5. Syndication Provisions: Include when multiple banks are involved in issuing the SBLC

6. Foreign Currency Provisions: Include when payments may be made in multiple currencies

7. Force Majeure: Include when specific force majeure provisions are required beyond standard ICC rules

What schedules should be included in a SBLC Transferable?

1. Schedule A - Form of Transfer Request: Standard form for requesting transfer of the SBLC

2. Schedule B - Required Documents for Drawing: Detailed list and format of documents required for making a claim

3. Schedule C - Fee Schedule: Detailed breakdown of all fees and charges

4. Schedule D - Specimen Signatures: Authorized signatures for all relevant parties

5. Schedule E - Form of Drawing Request: Standard form for making a drawing under the SBLC

6. Appendix 1 - ICC UCP 600 Incorporation: Specific UCP 600 articles incorporated by reference

7. Appendix 2 - Compliance Requirements: Anti-money laundering and regulatory compliance requirements

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
Clauses
Relevant Industries

Banking & Financial Services

International Trade

Construction & Infrastructure

Manufacturing

Energy & Resources

Real Estate

Shipping & Logistics

Import/Export

Commodities Trading

Project Finance

Relevant Teams

Legal

Finance

Treasury

Trade Finance

Compliance

Risk Management

Banking Operations

International Banking

Credit Administration

Documentary Credits

Commercial Banking

Relevant Roles

Trade Finance Manager

Corporate Banking Officer

Letter of Credit Specialist

Financial Controller

Treasury Manager

Compliance Officer

Legal Counsel

Risk Manager

Commercial Banking Director

International Trade Specialist

Credit Manager

Documentary Credits Officer

Chief Financial Officer

Banking Operations Manager

Transaction Banking Specialist

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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