The Recourse Letter of Credit serves as a crucial financial instrument in international trade transactions, particularly relevant under Swiss law given Switzerland's prominence in global banking and trade finance. This document is typically used when a bank wants to maintain explicit recourse rights against the applicant while providing payment assurance to the beneficiary. It combines elements of traditional letters of credit with specific provisions ensuring the bank's right to reimbursement from the applicant. The document incorporates both UCP 600 international standards and Swiss legal requirements, making it particularly suitable for cross-border transactions where strong legal protection is desired. The Swiss legal framework provides additional security and clarity regarding enforcement of recourse rights, making this document type particularly attractive for international trade finance transactions requiring robust legal protection.

1. Letter Header and Date: Bank's letterhead, date, and reference number of the Letter of Credit

2. Addressee Details: Full details of the beneficiary including name, address, and any reference numbers

3. Credit Number and Amount: Specific LC number and the maximum amount for which the credit is issued

4. Form of Credit: Specification that this is a recourse letter of credit and its form (irrevocable, confirmed/unconfirmed)

5. Applicant Information: Complete details of the applicant requesting the letter of credit

6. Availability and Expiry: Terms of availability, expiry date, and place for presentation

7. Payment Terms: Specific conditions and timing of payment, including whether payment is at sight or deferred

8. Required Documents: Detailed list of documents required for presentation

9. Recourse Provisions: Clear statement of the bank's recourse rights against the applicant

10. Reimbursement Terms: Terms under which the applicant must reimburse the bank

11. Governing Law Declaration: Express statement that Swiss law governs the letter of credit

12. Authorization and Signatures: Bank officer's authorization and signature block