Irrevocable Standby Letter Of Credit Template for Indonesia

The Irrevocable Standby Letter of Credit is a critical financial instrument used in Indonesian and international business transactions when parties seek a reliable form of security for payment or performance obligations. This document is commonly utilized in various commercial contexts, from securing contract performance to backing financial obligations. Governed by Indonesian law and incorporating international banking practices through UCP 600 and ISP98 rules, it provides beneficiaries with a robust, independent undertaking from a bank to pay upon presentation of compliant documents. The irrevocable nature means it cannot be amended or cancelled without the agreement of all parties, offering strong protection to the beneficiary. The document includes specific terms regarding drawing conditions, expiry dates, applicable fees, and documentary requirements, serving as a contingent obligation that typically remains undrawn if the underlying business transaction proceeds as planned.

1. Letter Reference Number: Unique identification number of the SBLC

2. Date of Issuance: The date when the SBLC is issued

3. Type of Credit: Clear indication that this is an Irrevocable Standby Letter of Credit

4. Issuing Bank Details: Complete name and address of the issuing bank

5. Beneficiary Details: Full name and address of the beneficiary

6. Applicant Details: Full name and address of the applicant requesting the SBLC

7. Currency and Amount: The currency and amount of the SBLC in both figures and words

8. Expiry Date: Clear statement of expiration date and place

9. Drawing Terms: Specific conditions and documentation required for drawing under the SBLC

10. Purpose of SBLC: Clear description of the underlying transaction or obligation being secured

11. Governing Law: Statement that the SBLC is governed by Indonesian law

12. UCP/ISP Declaration: Statement of applicable rules (UCP 600 or ISP98)