Counter Standby Letter Of Credit Template for Philippines

A Counter Standby Letter of Credit is a crucial financial instrument used in international banking and trade transactions where additional security layers are required. This document is particularly relevant when a bank needs to provide a counter-guarantee to support a primary Standby Letter of Credit issued by another bank. Under Philippine jurisdiction, these instruments are regulated by the Bangko Sentral ng Pilipinas and must comply with both local banking laws and international banking standards. The document typically details the conditions for payment, document requirements, validity period, and the mechanisms for making claims. It's commonly used in large international transactions, project financing, or when local banks need to provide backing for their clients' international obligations through correspondent banking relationships.

1. Letter Reference and Date: Unique reference number, date of issuance, and document type identification

2. Bank Details: Full details of the issuing bank including address and contact information

3. Applicant Information: Complete details of the party requesting the Counter Standby Letter of Credit

4. Beneficiary Information: Details of the party in whose favor the CSBLC is being issued

5. Reference to Primary SBLC: Details of the primary Standby Letter of Credit this counter instrument relates to

6. Amount and Currency: Specific amount and currency of the Counter Standby Letter of Credit

7. Purpose and Scope: Clear statement of the purpose and scope of the Counter Standby Letter of Credit

8. Terms and Conditions: Detailed conditions for activation, payment, and enforcement of the CSBLC

9. Expiry Details: Explicit statement of validity period and expiry conditions

10. Payment Terms: Specific procedures and requirements for demanding payment

11. Governing Law Declaration: Statement of applicable law and jurisdiction