Letter Of Credit 90 Days for Germany

Letter Of Credit 90 Days Template for Germany

A Letter of Credit with 90-day payment terms is a formal banking instrument governed by German law and international banking regulations (UCP 600), where a bank guarantees payment to a seller on behalf of a buyer after a 90-day period, subject to the presentation of compliant documents. This document, operating under German jurisdiction and EU regulations, provides security for international trade transactions by ensuring the seller receives payment through the banking system while offering the buyer a 90-day financing period. It includes detailed terms for document presentation, payment conditions, and specific requirements for all parties involved in the transaction.

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What is a Letter Of Credit 90 Days?

The Letter of Credit 90 Days is a fundamental trade finance instrument used in international commerce, particularly relevant under German law and EU regulations. It serves as a secure payment method where the issuing bank commits to pay the beneficiary (seller) 90 days after presentation of compliant documents, providing the seller with payment security while offering the buyer extended payment terms. This document type is essential when parties seek to balance payment security with cash flow management in international trade. It incorporates specific requirements under German banking regulations, EU trade laws, and international banking standards (UCP 600), making it particularly suitable for German-based international trade transactions where deferred payment terms are desired. The document includes comprehensive details about the trade transaction, payment terms, document requirements, and obligations of all parties involved.

What sections should be included in a Letter Of Credit 90 Days?

1. Issuing Bank Details: Complete name, address, and reference numbers of the issuing bank

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

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

4. Applicant Details: Full name, address, and contact information of the buyer/applicant

5. Beneficiary Details: Full name, address, and contact information of the seller/beneficiary

6. Currency and Amount: Specified currency and maximum amount of the LC

7. Expiry Date: 90-day validity period clearly stated with specific expiration date

8. Place of Expiry: Location where the LC expires

9. Available With/By: Details of the nominated bank and manner of availability (by sight, deferred payment, etc.)

10. Partial Shipments: Whether partial shipments are allowed or prohibited

11. Transhipment: Whether transhipment is allowed or prohibited

12. Documents Required: Detailed list of all required documents for LC settlement

13. Goods Description: Precise description of the goods/services covered by the LC

14. Payment Terms: Specific 90-day payment terms and conditions

15. Presentation Period: Timeframe within which documents must be presented

What sections are optional to include in a Letter Of Credit 90 Days?

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

2. Back-to-Back Arrangements: Include when the LC supports back-to-back LC arrangements

3. Red Clause: Include when advance payment to the beneficiary is permitted

4. Green Clause: Include when warehouse storage-related advances are permitted

5. Revolving Terms: Include when the LC is meant to revolve in value or time

6. Confirmation Instructions: Include when confirmation by another bank is required

7. Special Conditions: Include any transaction-specific conditions or requirements

What schedules should be included in a Letter Of Credit 90 Days?

1. Schedule A - Document Requirements: Detailed specifications for each required document including format and content requirements

2. Schedule B - Shipping Terms: Detailed shipping instructions, including ports, modes of transport, and delivery terms

3. Schedule C - Goods Specification: Detailed technical specifications of the goods being traded

4. Appendix 1 - Standard Banking Forms: Standard forms required by the issuing bank for document presentation

5. Appendix 2 - UCP 600 Declaration: Statement of application of UCP 600 rules and any exceptions

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

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

Germany

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

International Trade

Manufacturing

Wholesale

Retail

Agriculture

Mining

Automotive

Electronics

Textiles

Chemical Industry

Construction Materials

Heavy Equipment

Consumer Goods

Banking and Finance

Commodities Trading

Energy

Relevant Teams

Finance

International Trade

Treasury

Legal

Procurement

Trade Operations

Risk Management

Supply Chain

Commercial Operations

Banking Operations

Trade Compliance

Credit Control

Relevant Roles

Trade Finance Manager

International Trade Specialist

Import/Export Manager

Treasury Manager

Finance Director

Credit Manager

Documentary Credits Specialist

Trade Operations Manager

Chief Financial Officer

Banking Relations Manager

Procurement Manager

Supply Chain Manager

Commercial Director

International Sales Manager

Trade Compliance Officer

Risk 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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