Application For Letter Of Credit for the Netherlands

Application For Letter Of Credit Template for Netherlands

An Application for Letter of Credit under Dutch law is a formal request document submitted to a bank to issue a Letter of Credit, which serves as a guaranteed payment mechanism in international trade transactions. This document, governed by Dutch financial regulations and international banking practices (particularly UCP 600), contains detailed specifications about the proposed Letter of Credit, including beneficiary details, payment terms, required documentation, and shipping conditions. It forms the basis for the bank's issuance of the actual Letter of Credit and must comply with both Dutch financial supervision requirements and international banking standards.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Application For 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 Application For Letter Of Credit?

The Application For Letter of Credit is a critical document used in international trade finance, particularly when parties seek secure payment methods for cross-border transactions. This application, when submitted under Dutch jurisdiction, must comply with the Dutch Financial Supervision Act (Wft) and relevant EU regulations, while also adhering to international banking practices such as UCP 600. The document is typically used when an importer (buyer) wants their bank to issue a Letter of Credit in favor of an exporter (seller), providing payment security for international trade transactions. The application includes comprehensive details about the proposed trade transaction, including payment terms, shipping requirements, and document requirements. Its completion marks the first step in establishing a Letter of Credit and requires careful attention to detail as it forms the basis for the bank's subsequent Letter of Credit issuance.

What sections should be included in a Application For Letter Of Credit?

1. Applicant Information: Complete details of the applicant including legal name, address, contact information, and registration numbers

2. Beneficiary Information: Full details of the beneficiary including legal name, address, and bank details

3. Letter of Credit Type: Specification of the type of LC (e.g., Irrevocable, Confirmed, Transferable, etc.)

4. Currency and Amount: The currency and amount of the Letter of Credit in both figures and words

5. Expiry Date and Place: The expiration date of the Letter of Credit and the place where it expires

6. Shipment Details: Information about shipment including latest shipment date, partial shipments, transhipment permissions

7. Document Requirements: List of required documents (e.g., commercial invoice, transport documents, insurance documents)

8. Goods Description: Detailed description of the goods or services being traded

9. Payment Terms: Specifications of when and how payment should be made

10. Bank Charges: Information about who bears which bank charges

What sections are optional to include in a Application For Letter Of Credit?

1. Insurance Instructions: Required when the applicant needs specific insurance coverage requirements to be stated

2. Special Conditions: Any additional terms or conditions specific to this transaction

3. Transfer Instructions: Required when the Letter of Credit needs to be transferable

4. Back-to-Back LC Details: Required when this LC is being issued against another LC

5. Revolving Credit Instructions: Required when the LC is to be issued as a revolving credit

6. Red Clause Instructions: Required when advance payment provisions are needed

What schedules should be included in a Application For Letter Of Credit?

1. Required Documents Checklist: Detailed checklist of all required documents with specific requirements for each

2. Commercial Invoice Template: Standard format for the commercial invoice if specific formatting is required

3. Bank's Standard Terms and Conditions: The issuing bank's standard terms and conditions for Letters of Credit

4. Fee Schedule: Detailed breakdown of all applicable bank charges and fees

5. Authorization Signatures: Specimen signatures of authorized persons who can act on behalf of the applicant

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 and Financial Services

Import/Export

Manufacturing

Wholesale Trade

Retail Trade

Commodities Trading

Shipping and Logistics

Agriculture

Mining and Resources

Construction

Industrial Equipment

Relevant Teams

Finance

Treasury

International Trade

Procurement

Supply Chain

Risk Management

Legal

Trade Operations

Banking Relations

Credit Administration

Relevant Roles

Trade Finance Manager

Import/Export Manager

Treasury Manager

Finance Director

International Trade Specialist

Trade Operations Manager

Banking Relations Manager

Chief Financial Officer

Financial Controller

Procurement Manager

Supply Chain Manager

Credit Manager

Documentary Credits Specialist

International Business Development Manager

Risk Management Officer

Industries
UCP 600 (Uniform Customs and Practice for Documentary Credits): The international standard rules for Letters of Credit operations, published by the International Chamber of Commerce (ICC). These rules are crucial as they govern the issuance and handling of Letters of Credit globally.
Dutch Civil Code (Burgerlijk Wetboek) - Book 7: Contains provisions regarding service contracts and banking transactions under Dutch law, including regulations relevant to documentary credits and banking relationships.
Dutch Financial Supervision Act (Wet op het financieel toezicht - Wft): Regulates financial institutions in the Netherlands, including banks issuing Letters of Credit, and sets requirements for financial services and products.
EU Regulation No. 575/2013 (Capital Requirements Regulation): Establishes prudential requirements for credit institutions operating in the EU, including Dutch banks, affecting how they handle Letters of Credit and other banking instruments.
International Standard Banking Practice (ISBP 745): Supplements UCP 600 by providing detailed guidelines for examining documents under Letters of Credit, widely used in international banking practice.
Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft): Requires banks to perform due diligence and maintain compliance in financial transactions, including Letter of Credit operations.
EU Directive 2015/2366 (PSD2): Regulates payment services and payment service providers in the EU, including aspects of banking transactions related to Letters of Credit.
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

Find the exact document you need

Notice Of Credit

A Dutch-compliant formal document notifying the recipient of a credit applied to their account, including essential credit and reference information.

find out more

Letter Of Credit Project (Finance)

A Dutch law-governed letter of credit document establishing terms and conditions for project finance security arrangements, combining local banking regulations with international standards.

find out more

Letter Of Credit For Services

A Dutch law-governed banking instrument that provides payment security for service-based transactions through an irrevocable bank commitment, subject to UCP 600 rules.

find out more

Lc For Payment

A Dutch law-governed Letter of Credit document that provides a bank's irrevocable commitment to pay a beneficiary upon presentation of compliant documents.

find out more

At Sight Letter Of Credit

A Dutch law-governed banking instrument providing immediate payment upon presentation of compliant trade documents, commonly used in international trade transactions.

find out more

Lc At Sight 90 Days

A Dutch law-governed Letter of Credit providing 90-day deferred payment terms while offering immediate documentary security to the seller.

find out more

Direct Pay Letter Of Credit

A Dutch law-governed financial instrument providing bank-guaranteed direct payment upon presentation of complying documents.

find out more

Usance Lc 90 Days

A Dutch law-governed trade finance instrument providing 90-day deferred payment terms, backed by bank guarantee under UCP 600 rules.

find out more

Lc Issuance

A Dutch law-governed banking instrument that provides payment guarantee in international trade, issued by a bank under Dutch financial regulations and UCP 600.

find out more

Standby Guarantee

A Dutch law-governed bank guarantee providing financial security for commercial obligations, typically following ISP98 rules.

find out more

180 Days Usance Lc

A Dutch law-governed trade finance instrument providing 180-day deferred payment terms, backed by bank guarantee and subject to document compliance.

find out more

Export Lc Discounting

Dutch law-governed agreement for discounting export letters of credit, establishing terms between a bank and an exporter for trade finance facilities.

find out more

Lc Finance Term

Dutch law governed term loan agreement establishing terms and conditions for a fixed-term lending facility between lender(s) and borrower(s).

find out more

Cash Collateralized Letter Of Credit

Dutch law-governed agreement for a cash-backed Letter of Credit, establishing terms between bank, applicant, and beneficiary with associated collateral arrangements.

find out more

Banker's Usance Lc

A Dutch law-governed documentary credit instrument providing deferred payment terms in international trade, with payment due after a specified usance period.

find out more

Application For Letter Of Credit

A Dutch-law governed application form requesting a bank to issue a Letter of Credit for international trade transactions, specifying payment terms and conditions.

find out more

Loan Against Irrevocable Lc

Dutch law-governed agreement for providing loan facilities secured against irrevocable letters of credit, typically used in international trade finance.

find out more

Payment Terms Dlc

A Dutch law-governed document establishing payment terms and conditions between commercial parties, ensuring compliance with Dutch Civil Code and EU payment regulations.

find out more

Mixed Payment Lc

A Dutch law-governed financial instrument combining immediate and deferred payment structures in international trade transactions, providing secure and flexible payment terms under UCP 600 guidelines.

find out more

Irrevocable Non Transferable Letter Of Credit

A Dutch law-governed bank guarantee instrument that provides secure payment in international trade, subject to document compliance and UCP 600 rules.

find out more

Direct Pay Standby Letter Of Credit

A Dutch law-governed banking instrument providing an irrevocable payment guarantee upon presentation of complying documents, offering enhanced security in commercial transactions.

find out more

Credit Card Clearance Letter

A Dutch law-governed formal document confirming the full settlement and closure of credit card debt obligations, issued by the credit card company or bank to the account holder.

find out more

Freely Negotiable Letter Of Credit

Dutch law-governed Letter of Credit document for secure international trade payments, combining local legal requirements with international banking standards.

find out more

Verbiage Letter Of Credit

A Dutch-law governed Letter of Credit document that facilitates secure international trade payments while complying with both Dutch banking regulations and international standards.

find out more

Transferable Lc At Sight

A Dutch law-governed transferable letter of credit providing immediate payment upon document presentation, enabling transfer of rights to secondary beneficiaries in international trade.

find out more

Small Business Letter Of Credit

A Dutch law-governed Letter of Credit document designed for small businesses, providing secure payment guarantees in international trade transactions.

find out more

Secured Letter Of Credit

A Dutch law-governed Letter of Credit backed by security interests, providing enhanced protection in international trade transactions.

find out more

Line Of Credit Letter

A Dutch law-governed letter establishing a revolving credit facility between a financial institution and a borrower, setting out terms for borrowing, repayment, and facility management.

find out more

Non Operative Letter Of Credit

A Dutch law-governed banking instrument providing conditional payment guarantee in international trade transactions, subject to UCP 600 and Dutch financial regulations.

find out more

Letter Of Credit 90 Days

A Dutch law-governed banking instrument providing 90-day deferred payment security in international trade transactions, subject to document compliance.

find out more

Letter Of Credit 30 Days

A Dutch law-governed Letter of Credit document establishing 30-day payment terms and conditions for secure international trade transactions.

find out more

Installment Letter Of Credit

Template for an Installment Letter of Credit under Dutch law, facilitating staged payments in international trade transactions with comprehensive regulatory compliance.

find out more

Inland Letter Of Credit

A Dutch law-governed financial instrument issued by a bank guaranteeing payment for domestic trade transactions within the Netherlands upon presentation of specified documents.

find out more

Domestic Letter Of Credit

A Dutch-law governed bank guarantee instrument for domestic trade transactions, providing payment security upon presentation of compliant documents within the Netherlands.

find out more

Discrepancy Letter Of Credit

A Dutch law-governed formal notification from a bank to a beneficiary regarding discrepancies in letter of credit documentation, outlining issues and available remedies.

find out more

Beneficiary In Letter Of Credit

A Dutch law-governed formal document submitted by a beneficiary to claim payment under a Letter of Credit, complying with both Dutch and international banking regulations.

find out more

Authorization Letter To Claim Credit Card Delivery

A Dutch law-compliant authorization letter enabling a designated person to collect a credit card from a bank on behalf of the cardholder.

find out more

Unsecured Letter Of Credit

A Dutch law-governed banking instrument that provides an irrevocable payment commitment without requiring security from the applicant.

find out more

Trade Finance Letter Of Credit

A Dutch law-governed Letter of Credit providing secure payment guarantee in international trade, combining local legal requirements with UCP 600 rules.

find out more

Unconditional Letter Of Credit

A Dutch law-governed banking instrument providing an irrevocable and unconditional payment guarantee from a bank to a beneficiary, payable upon simple demand.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now