Letter Of Credit Facility for the Netherlands

Letter Of Credit Facility Template for Netherlands

A comprehensive agreement governed by Dutch law that establishes the terms and conditions under which a bank will issue letters of credit on behalf of a commercial client. The document details the facility limit, issuance procedures, fees, security arrangements, and ongoing obligations of the parties. It incorporates relevant Dutch banking regulations, EU financial services legislation, and international trade practices, particularly the UCP 600 rules. The agreement serves as the master document for all subsequent letter of credit transactions under the facility, ensuring compliance with Dutch financial supervision requirements while facilitating international trade operations.

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
Letter Of Credit Facility

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 Letter Of Credit Facility?

The Letter of Credit Facility agreement is a crucial document in international trade finance, particularly within the Dutch legal framework. It is used when a company requires regular access to letter of credit services for its international trade operations. The document establishes a pre-approved facility under which a bank agrees to issue letters of credit up to a specified limit, subject to defined terms and conditions. Under Dutch law and EU regulations, the agreement must comply with specific financial supervision requirements and banking regulations. The facility typically includes detailed provisions for security, operational procedures, and risk management, reflecting both local Dutch legal requirements and international banking practices. This document is essential for businesses engaged in regular import/export activities, providing them with a streamlined process for obtaining letters of credit while giving banks appropriate security and control mechanisms.

What sections should be included in a Letter Of Credit Facility?

1. Parties: Identification of the bank/financial institution (as issuer) and the customer (as applicant)

2. Background: Context of the facility arrangement and business relationship

3. Definitions: Key terms used throughout the agreement, including banking and trade finance terminology

4. Facility Details: Core terms including facility limit, purpose, and validity period

5. Conditions Precedent: Requirements to be satisfied before the facility becomes available

6. Issuance Mechanics: Procedures for requesting and issuing letters of credit

7. Fees and Commissions: All applicable charges, margins, and payment terms

8. Security Arrangements: Details of collateral, cash margin requirements, and other security

9. Representations and Warranties: Standard declarations by the customer about their business and capacity

10. Covenants: Ongoing obligations of the customer during the facility period

11. Events of Default: Circumstances that would constitute breach and trigger remedial actions

12. Bank's Rights and Remedies: Actions the bank can take in case of default or breach

13. Communications: Methods and requirements for notices and instructions

14. Governing Law and Jurisdiction: Specification of Dutch law and competent courts

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

1. Syndication Provisions: Required when the facility may be syndicated to other banks

2. Islamic Banking Provisions: Needed for Shariah-compliant letter of credit facilities

3. Parent Company Guarantee: Include when parent company support is required

4. Sanctions and Export Control: Detailed provisions for high-risk jurisdictions or industries

5. Multi-currency Provisions: Required when LCs can be issued in multiple currencies

6. Counter-Indemnity: Additional indemnity provisions for complex trade structures

7. Branch Network Provisions: When LCs can be issued through multiple bank branches

What schedules should be included in a Letter Of Credit Facility?

1. Facility Limits and Sub-limits: Detailed breakdown of facility limits by type and currency

2. Fee Schedule: Comprehensive list of all applicable fees and charges

3. Form of LC Application: Standard format for requesting issuance of letters of credit

4. Security Documents: List and copies of all security documentation

5. Authorized Signatories: List of persons authorized to request LCs and their specimen signatures

6. Conditions Precedent Documents: Checklist of required documents and evidence

7. Compliance Requirements: Detailed KYC and compliance documentation requirements

8. Standard Forms: Templates for various notices and requests under the facility

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

Banking and Financial Services

International Trade

Manufacturing

Import/Export

Wholesale and Distribution

Retail

Energy and Commodities

Construction

Agriculture

Shipping and Logistics

Relevant Teams

Legal

Finance

Treasury

Trade Finance

Risk Management

Compliance

Commercial Operations

Supply Chain

Credit Control

International Banking

Relevant Roles

Chief Financial Officer

Treasury Manager

Trade Finance Manager

Finance Director

Import/Export Manager

Credit Controller

Risk Manager

Commercial Director

Legal Counsel

Compliance Officer

Banking Relationship Manager

Documentary Credits Specialist

Financial Controller

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

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