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Letter Of Credit And Standby Letter Of Credit
"Need a Letter of Credit to facilitate an international machinery purchase from our Singapore supplier worth USD 2.5 million, with specific requirements for phased payments and quality inspection certificates before each payment release, to be effective from March 2025."
1. Reference Number: Unique identifier for the Letter of Credit
2. Issuing Bank Details: Complete name, address, and contact information of the issuing bank
3. Date of Issue: Date when the Letter of Credit is issued
4. Beneficiary Information: Complete details of the party in whose favor the LC is issued
5. Applicant Information: Complete details of the party requesting the LC
6. Credit Amount and Currency: Specified amount and currency of the Letter of Credit
7. Expiry Details: Expiration date and place of the Letter of Credit
8. Documentary Requirements: Detailed list of documents required for presentation
9. Terms and Conditions: Specific conditions and requirements for credit activation
10. Governing Law: Statement that the LC is governed by Singapore law and UCP 600
1. Transferability Clause: Optional section specifying if and how the LC can be transferred to another beneficiary
2. Revolving Terms: Optional section for LCs that automatically renew under specified conditions
3. Red Clause Provisions: Optional section allowing advance payment before document presentation
4. Back-to-Back Provisions: Optional section for back-to-back LC arrangements
5. Confirmation Instructions: Optional section for confirmed LCs requiring another bank's guarantee
1. Document Checklist: Comprehensive list of required documents with specific format requirements
2. Payment Terms Schedule: Detailed schedule of payment mechanisms, timelines, and conditions
3. Bank Forms: Standard forms required by the issuing bank for document presentation
4. SWIFT Message Format: Specified format for SWIFT messaging related to the LC
5. Compliance Checklist: List of regulatory compliance requirements under Singapore law
Authors
Standby Letter of Credit (SBLC)
Issuing Bank
Advising Bank
Confirming Bank
Applicant
Beneficiary
Presentation
Documents
Credit Amount
Expiry Date
Place of Expiry
Availability
Banking Day
Complying Presentation
Draft
Negotiation
Nominated Bank
Reimbursing Bank
Transferable Credit
UCP 600
ISP98
Force Majeure
Honour
Notice of Completeness
Original
Transport Document
Clean Collection
Sight Payment
Deferred Payment
Documentary Requirements
Discrepancy
Amendment
Assignment of Proceeds
Back-to-Back Credit
Amount and Currency
Expiry and Validity
Documentary Requirements
Payment Terms
Bank Obligations
Applicant Obligations
Beneficiary Rights
Presentation Requirements
Discrepancy Handling
Amendment Procedures
Transfer Rights
Assignment
Force Majeure
Governing Law
Dispute Resolution
Bank Charges
Reimbursement
Default
Termination
Notice Requirements
Compliance
Anti-Money Laundering
Sanctions
Documentation Standards
Representations and Warranties
Indemnification
Severability
Entire Agreement
Counterparts
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