180 Days Usance Lc for the Netherlands

180 Days Usance Lc Template for Netherlands

A 180 Days Usance Letter of Credit is a specialized trade finance instrument governed by Dutch law that provides for deferred payment terms of 180 days from a specified event (typically bill of lading date or document presentation). This document, operating under the Dutch legal framework and UCP 600, serves as a bank's commitment to pay the beneficiary after the agreed 180-day period, provided all document requirements are met. It includes detailed specifications for payment terms, document requirements, and obligations of all parties involved, while incorporating specific Dutch regulatory requirements and banking practices.

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What is a 180 Days Usance Lc?

The 180 Days Usance Letter of Credit is a crucial trade finance instrument used in international trade transactions where extended payment terms are required. This document type is particularly relevant when exporters can offer longer credit periods to importers while maintaining their own financial security through bank guarantees. Operating under Dutch law and international banking practices, it provides a structured framework for deferred payment over a 180-day period. The document includes comprehensive details about payment terms, document requirements, and party obligations, making it suitable for high-value international trade transactions where both payment security and extended credit terms are needed. It's commonly used in sectors with longer production or shipping cycles, or where industry practice favors extended payment terms.

What sections should be included in a 180 Days Usance Lc?

1. Letter of Credit Number and Date: Unique LC identification number and issuance date

2. Issuing Bank Details: Complete name, address, and SWIFT code of the issuing bank

3. Applicant Details: Full name, address, and registration details of the party requesting the LC

4. Beneficiary Details: Complete name, address, and banking details of the beneficiary

5. Currency and Amount: LC value and currency specification

6. Validity and Expiry: Validity period and expiry date of the LC

7. Payment Terms: 180 days usance payment terms, calculation method, and maturity determination

8. Required Documents: List of documents required for LC presentation

9. Shipment Terms: Latest shipment date, port of loading/discharge, and delivery terms

10. Presentation Period: Timeframe for document presentation after shipment

11. Governing Law and UCP Reference: Reference to Dutch law and UCP 600 governance

What sections are optional to include in a 180 Days Usance Lc?

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

2. Partial Shipments: Include when partial shipments are allowed or prohibited

3. Transhipment: Include when specific transhipment restrictions apply

4. Additional Conditions: Include for special requirements or conditions specific to the trade

5. Red Clause: Include if advance payment provisions are required

6. Green Clause: Include if warehouse storage-related provisions are needed

7. Insurance Requirements: Include when specific insurance coverage details need to be specified

8. Bank-to-Bank Reimbursement: Include when specific reimbursement arrangements between banks need to be detailed

What schedules should be included in a 180 Days Usance Lc?

1. Document Requirements Schedule: Detailed list of required documents with specific format and content requirements

2. Payment Calculation Schedule: Formula and examples for calculating maturity date and payment amount

3. Fee Schedule: Breakdown of all applicable bank charges and fees

4. Commodity Description Schedule: Detailed description of goods being traded under the LC

5. Special Instructions Schedule: Any special handling or processing instructions for documents

6. Amendment Format: Standard format for future amendments to the LC

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

Netherlands

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

International Trade

Banking & Financial Services

Manufacturing

Import/Export

Commodities Trading

Shipping & Logistics

Agricultural Products

Industrial Equipment

Textiles & Garments

Chemical Products

Consumer Goods

Relevant Teams

Trade Finance

Treasury

Legal

International Trade Operations

Risk Management

Compliance

Supply Chain

Finance

Documentary Credits

Trade Services

Relevant Roles

Trade Finance Manager

International Trade Specialist

Finance Director

Treasury Manager

Import/Export Manager

Documentary Credits Specialist

Trade Operations Manager

Financial Controller

Compliance Officer

Legal Counsel

Banking Relationship Manager

Chief Financial Officer

Trade Finance Officer

Credit Risk Manager

Supply Chain 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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