Confirmed Irrevocable Letter Of Credit for Switzerland

Confirmed Irrevocable Letter Of Credit Template for Switzerland

A Confirmed Irrevocable Letter of Credit under Swiss law is a formal banking instrument that provides a secure method of payment in international trade transactions. It represents an irrevocable undertaking by both the issuing bank and a second bank (the confirming bank) to pay the beneficiary a specified amount upon presentation of compliant documents. Governed by Swiss law, which is renowned for its precision and reliability in banking matters, this document incorporates both local regulations and international banking practices, particularly the UCP 600 rules. The Swiss jurisdiction provides additional security and clarity in interpretation and enforcement.

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What is a Confirmed Irrevocable Letter Of Credit?

The Confirmed Irrevocable Letter of Credit is a crucial document in international trade finance, particularly when parties seek enhanced payment security. It is typically used when the beneficiary (seller) requires additional security beyond the undertaking of the issuing bank alone, or when they prefer the commitment of a bank in their own country. Under Swiss law, which is widely respected in international banking, this document provides one of the highest levels of payment security in cross-border transactions. The confirmation by a second bank adds an independent undertaking to honor the credit, making it particularly valuable in transactions involving emerging markets or when there are concerns about the issuing bank's country risk. The document must comply with both Swiss banking regulations and international standards, particularly the UCP 600, and typically includes detailed specifications about required documents, payment terms, and conditions for the transfer of funds.

What sections should be included in a Confirmed Irrevocable Letter Of Credit?

1. Letter Reference and Date: Unique reference number and issuance date of the Letter of Credit

2. Form of Credit: Clear statement that this is an irrevocable and confirmed Letter of Credit

3. Applicant Details: Full name, address, and contact information of the party requesting the Letter of Credit

4. Beneficiary Details: Full name, address, and contact information of the party in whose favor the Letter of Credit is issued

5. Issuing Bank Details: Full name, address, and SWIFT code of the bank issuing the Letter of Credit

6. Confirming Bank Details: Full name, address, and SWIFT code of the bank confirming the Letter of Credit

7. Amount and Currency: The maximum amount and currency of the Letter of Credit, written in both figures and words

8. Expiry Date: The expiration date and place for presentation of documents

9. Available With/By: Specification of where and how the credit is available (payment, acceptance, negotiation)

10. Required Documents: Detailed list of all documents required for presentation

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

12. Description of Goods/Services: Precise description of the goods or services covered by the Letter of Credit

13. Special Conditions: Any additional terms, conditions, or instructions that apply to the Letter of Credit

What sections are optional to include in a Confirmed Irrevocable Letter Of Credit?

1. Revolving Conditions: Include when the Letter of Credit is revolving, specifying the revolving terms and conditions

2. Red Clause: Include when advance payment is permitted, specifying the terms of advance payment

3. Green Clause: Include when storage of goods is involved, specifying warehouse arrangements

4. Transferability Clause: Include when the Letter of Credit is transferable, specifying transfer conditions

5. Back-to-Back Provisions: Include when the Letter of Credit is part of a back-to-back arrangement

6. Deferred Payment Terms: Include when payment is to be made at a future date after document presentation

7. Insurance Requirements: Include when specific insurance arrangements are required beyond standard terms

What schedules should be included in a Confirmed Irrevocable Letter Of Credit?

1. Schedule A - Document Requirements: Detailed checklist of required documents and their specific requirements

2. Schedule B - Commercial Invoice Requirements: Specific requirements for the format and content of commercial invoices

3. Schedule C - Transport Document Requirements: Detailed requirements for bills of lading or other transport documents

4. Schedule D - Insurance Document Requirements: Specific requirements for insurance certificates or policies

5. Appendix 1 - Bank Contact Details: Complete contact information for all banks involved in the transaction

6. Appendix 2 - Sample Document Formats: Templates or examples of acceptable document formats

7. Appendix 3 - Fee Schedule: Detailed breakdown of all applicable banking fees and charges

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

Switzerland

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Clauses
Relevant Industries

Banking & Financial Services

International Trade

Import/Export

Manufacturing

Commodities Trading

Shipping & Logistics

Agriculture

Energy

Mining

Retail

Wholesale Distribution

Construction

Pharmaceutical

Relevant Teams

Trade Finance

International Banking

Corporate Banking

Documentary Credits

Risk Management

Compliance

Treasury

Operations

Legal

Supply Chain

Procurement

Finance

Relevant Roles

Trade Finance Manager

International Banking Officer

Documentary Credits Specialist

Export Finance Manager

Import Operations Manager

Trade Operations Officer

Credit Risk Manager

Relationship Manager - Corporate Banking

Treasury Manager

Compliance Officer

Chief Financial Officer

International Trade Specialist

Supply Chain Manager

Procurement Manager

Banking Operations Manager

Letter of Credit 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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