Surety Backed Letter Of Credit for the United Kingdom

Surety Backed Letter Of Credit Template for England and Wales

A Surety Backed Letter of Credit under English and Welsh law is a specialized financial instrument that combines the security of a traditional letter of credit with additional surety protection. It provides enhanced security for complex commercial transactions by incorporating both bank and surety company guarantees. This instrument is governed by English common law principles and relevant UK financial regulations, including the Financial Services and Markets Act 2000 and UCP 600 rules.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Generate a Bespoke Document

1. Select your governing law:

2. Enter your key requirements:

3. Create your document to edit, review or download

Download a Standard Template

Get our England and Wales-compliant Surety Backed Letter Of Credit

4.6 / 5

4.8 / 5

Alternatively: Run an advanced review of an existing
Surety Backed Letter Of Credit

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

Upload your Doc

What is a Surety Backed Letter Of Credit?

The Surety Backed Letter of Credit is typically employed in high-value commercial transactions where additional security layers are required beyond standard letter of credit protection. This document is particularly relevant in complex international trade, construction, or infrastructure projects where multiple parties seek enhanced payment security. Under English and Welsh jurisdiction, it provides a robust legal framework combining traditional letter of credit mechanics with surety guarantees, offering protection against both performance and payment risks. The document typically includes detailed provisions for drawing conditions, surety obligations, and specific procedures for claim processing.

What sections should be included in a Surety Backed Letter Of Credit?

1. Parties: Identifies all parties: issuing bank, beneficiary, applicant, and surety

2. Background: Context of the transaction and relationship between parties

3. Definitions: Key terms used throughout the document including UCP 600 and other relevant regulations

4. Letter of Credit Terms: Core LC provisions including amount, expiry, and drawing conditions

5. Surety Obligations: Details of the surety's guarantee and conditions

6. Drawing Procedures: Process for making claims under the LC including required documentation

7. Reimbursement Provisions: Terms for reimbursing the issuing bank

What sections are optional to include in a Surety Backed Letter Of Credit?

1. Transfer Rights: Optional terms for transferring the LC - include when the LC needs to be transferable

2. Counter-Indemnities: Additional indemnity provisions for cases requiring multiple layers of security

3. Syndication Provisions: Terms for syndicated participation in large LCs with multiple bank participation

What schedules should be included in a Surety Backed Letter Of Credit?

1. Form of Demand: Standard format for making drawings under the LC

2. Required Documents: List of documents required for LC drawings

3. Form of Surety Bond: The surety's guarantee documentation

4. Fee Schedule: Details of all applicable fees and charges

5. Notice Details: Contact information and notice requirements for all parties

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

Cost

Free to use

Relevant legal definitions

Clauses

Relevant Industries

International Trade
Construction
Infrastructure
Energy
Manufacturing

Relevant Teams

Treasury
Finance
Legal
Commercial
Risk Management

Relevant Roles

Trade Finance Manager
Chief Financial Officer
Treasury Manager
Risk Manager
Commercial Director

Industries

UCP 600: Uniform Customs and Practice for Documentary Credits - Essential rules governing international letters of credit operations

ISP98: International Standby Practices - Rules governing standby letters of credit and similar instruments

URR 725: Uniform Rules for Bank-to-Bank Reimbursements - Governing interbank reimbursement procedures

Bills of Exchange Act 1882: UK legislation governing negotiable instruments including certain aspects of letters of credit

Financial Services and Markets Act 2000: Primary UK legislation regulating financial services and markets, including banking activities

Financial Services Act 2012: Updates to financial services regulation including amendments to FSMA 2000

UK Banking Act 2009: Legislation governing banking operations and regulation in the UK

Statute of Frauds 1677: Historic legislation requiring certain contracts, including guarantees, to be in writing

Law of Property (Miscellaneous Provisions) Act 1989: Legislation affecting formal requirements for certain types of contracts and property transactions

ICC Rules: International Chamber of Commerce rules governing international trade and banking practices

SWIFT Messaging Standards: Technical standards for international banking communications and letter of credit transmission

Money Laundering Regulations 2017: UK regulations implementing anti-money laundering requirements for financial transactions

Proceeds of Crime Act 2002: Legislation dealing with money laundering and proceeds of crime, affecting financial transactions

Contracts (Rights of Third Parties) Act 1999: Legislation governing third party rights in contracts, relevant for multi-party LC arrangements

Financial Collateral Arrangements (No.2) Regulations 2003: Regulations governing financial collateral arrangements in the UK

Basel III Requirements: International banking standards affecting capital requirements and risk management

PRA Requirements: Prudential Regulation Authority requirements for banks and financial institutions in the UK

FCA Regulations: Financial Conduct Authority regulations governing financial services and consumer protection

Find the exact document you need

No matches found.

Unsecured Letter Of Credit

An England & Wales financial document ensuring payment assurance without collateral in international and domestic trade.

How Cambridge United Uses Genie AI to Speed Up Player Signings and Slash Legal Costs

Generate a Bespoke Document

Download a Standard Template

What is a Surety Backed Letter Of Credit?

What sections should be included in a Surety Backed Letter Of Credit?

What sections are optional to include in a Surety Backed Letter Of Credit?

What schedules should be included in a Surety Backed Letter Of Credit?

Authors

Alex Denne

Jurisdiction

Publisher

Document Type

Sector

Cost

Find the exact document you need

Unsecured Letter Of Credit

Unrestricted Letter Of Credit

Trade Finance Letter Of Credit

Unconditional Letter Of Credit

Transit Letter Of Credit

Synthetic Letter Of Credit

Syndicated Letter Of Credit

Surety Backed Letter Of Credit

Structured Letter Of Credit

Restricted Letter Of Credit

Revolving Letter Of Credit

Reverse Letter Of Credit

Sblc Purchase Agreement

Sblc Lease Agreement

Provisional Credit Reversal Letter

Outstanding Letter Of Credit

Operative Letter Of Credit

Non Recourse Sblc

Non Negotiable Letter Of Credit

Negotiable Letter Of Credit

Letter Of Credit Verbiage

Letter Of Credit Negotiable Instrument

Letter Of Credit Loc

Letter Of Credit Facility

Letter Of Credit Discrepancy Acceptance

Letter Of Credit Balance Sheet

Letter Of Credit Amendment

Lease Letter Of Credit

Issuing Bank Letter Of Credit

Irrevocable Revolving Letter Of Credit

International Letter Of Credit

Interest On Letter Of Credit

Fronting Letter Of Credit

Fronting Fee Letter Of Credit

Fixed Letter Of Credit

Electronic Letter Of Credit

Divisible Letter Of Credit

Direct Letter Of Credit

Credit Reference Letter From Utility Company

Credit Reference Letter From Supplier

Genie’s Security Promise

Your documents are private:

Your documents are protected:

Organizational security:

Templates

Contract Templates

Letter Templates

Policy Templates

Industries

Legal Services

Manufacturing

Construction

Solutions

Use Cases

Company Types

Comparisons

Business Categories

Teams

Information

Generate Legal Docs Free