The Irrevocable Standby Letter of Credit is a fundamental financial instrument used to provide payment security in various commercial transactions. It represents an irrevocable undertaking by a bank to pay a specified amount to a beneficiary when compliant documents are presented, effectively serving as a financial backstop. This document type is particularly relevant in scenarios where parties seek a reliable payment security mechanism, such as in international trade, performance guarantees, or financial obligations. Under Indian jurisdiction, these instruments are governed by both domestic banking regulations and international practices (UCP 600), making them robust and internationally recognized. The document includes crucial elements such as credit amount, validity period, drawing conditions, and documentary requirements, providing a clear framework for all parties involved.

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

2. Date of Issuance: The date when the SBLC becomes effective

3. Issuing Bank Details: Complete name, address, and contact information of the issuing bank

4. Beneficiary Details: Full name, address, and contact information of the beneficiary

5. Applicant Details: Full name, address, and contact information of the applicant requesting the SBLC

6. Credit Amount: The maximum amount available under the SBLC, including currency denomination

7. Expiry Date: The final date until which the SBLC remains valid

8. Place of Expiry: Location where the SBLC expires and where documents must be presented

9. Drawing Terms: Specific conditions and requirements that must be met for the beneficiary to draw on the SBLC

10. Required Documents: List of documents that must be presented with any drawing request

11. Governing Law and Jurisdiction: Specification of Indian law as governing law and relevant jurisdiction

12. UCP 600 Declaration: Statement that the SBLC is subject to UCP 600