The Standby Letter of Credit for Lease is commonly used in Canadian commercial leasing transactions where landlords seek additional security beyond the tenant's covenant. This document is particularly relevant when dealing with high-value commercial leases or when tenants prefer not to provide large cash deposits. The letter of credit serves as a bank's undertaking to pay the landlord a specified amount upon presentation of documents evidencing the tenant's default under the lease. Governed by Canadian banking regulations, including the Bank Act and relevant provincial laws, as well as international banking practices (UCP 600 and ISP98), this instrument provides landlords with a secure, readily accessible form of financial protection while allowing tenants to maintain liquidity. The document typically specifies the maximum amount available, drawing conditions, expiry dates, and documentary requirements for making a demand.

1. Letter Reference Number: Unique identifier assigned by the issuing bank

2. Date of Issuance: Date when the letter of credit becomes effective

3. Beneficiary Details: Full name and address of the landlord/lessor who can draw on the letter of credit

4. Applicant Details: Full name and address of the tenant/lessee on whose behalf the SLOC is issued

5. Issuing Bank Details: Name, address, and contact information of the bank issuing the SLOC

6. Amount: Maximum amount available under the SLOC, in both numbers and words

7. Expiry Date: Date and place where the SLOC expires

8. Lease Reference: Details of the underlying lease agreement, including date and premises

9. Drawing Conditions: Specific conditions and documentation required for the beneficiary to draw on the SLOC

10. Form of Demand: Exact wording of the demand statement required from the beneficiary

11. Partial Drawings: Statement whether partial drawings are permitted or prohibited

12. Transferability: Statement whether the SLOC is transferable or not

13. Governing Law: Specification of applicable law and jurisdiction

14. Bank Authorization: Authorized signatures and bank stamps/seals