Legal Templates
Conditional Letter Of Credit

Conditional Letter Of Credit for South Africa

Conditional Letter Of Credit Template for South Africa

A formal banking instrument governed by South African banking laws and international trade protocols, particularly the UCP 600, that provides a conditional payment guarantee from a bank to a seller on behalf of a buyer. The document is subject to South African banking regulations, including the Banks Act 94 of 1990 and Exchange Control Regulations, and represents the bank's commitment to pay upon the presentation of compliant documents that fulfill specified conditions. It serves as a risk mitigation tool in international trade transactions while ensuring compliance with South African financial services legislation and regulatory requirements.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Generate a Bespoke Document

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

Download a Standard Template

Get our South Africa-compliant Conditional Letter Of Credit

4.6 / 5
4.8 / 5
Access for free
OR

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

The Conditional Letter of Credit is a crucial financial instrument in South African international trade and commercial transactions, providing security and risk mitigation for both buyers and sellers. This document is typically used when parties seek a secure payment method in cross-border transactions, with the issuing bank acting as an independent guarantor. The document must comply with South African banking regulations, including the Banks Act and Exchange Control Regulations, while also adhering to international standards such as the UCP 600. It contains specific conditions that must be met through the presentation of stipulated documents before payment can be released, making it particularly valuable in complex international trade transactions where parties may not have established trading relationships or where regulatory compliance is paramount.

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

1. Bank Details and Reference: Issuing bank's details, letter of credit number, and date of issuance

2. Beneficiary Details: Full name and address of the party receiving the letter of credit

3. Applicant Details: Full name and address of the party requesting the letter of credit

4. Amount and Currency: Specific amount and currency of the letter of credit, including words and figures

5. Expiry Details: Expiration date and place where the credit expires

6. Available With: Specifies whether the credit is available with any bank or specific banks

7. Payment Terms: Whether payment is by sight, acceptance, negotiation, or deferred payment

8. Partial Shipments/Transhipment: Whether partial shipments or transhipment is allowed or prohibited

9. Required Documents: Detailed list of all documents required for presentation

10. Conditions: Specific conditions that must be met before the credit can be drawn

11. Bank Charges: Specification of which party bears which bank charges

12. Presentation Period: Time period within which documents must be presented after shipment

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

1. Revolving Terms: Include when the letter of credit is revolving, specifying reinstatement terms

2. Red Clause: Include when advance payment provisions are required

3. Green Clause: Include when warehouse storage provisions are needed

4. Transfer Rights: Include when the credit needs to be transferable

5. Back-to-Back Provisions: Include when the credit forms part of a back-to-back arrangement

6. Confirmation Instructions: Include when confirmation by another bank is required

7. Insurance Requirements: Include when specific insurance requirements need to be detailed

8. Special Payment Terms: Include when there are specific payment arrangements or installments

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

1. Schedule A - Document Requirements: Detailed checklist of required documents and their specific requirements

2. Schedule B - Goods Description: Detailed description of the goods or services covered by the letter of credit

3. Schedule C - Shipping Terms: Specific shipping requirements, including ports, modes of transport, and deadlines

4. Appendix 1 - Bank's Standard Terms: Standard terms and conditions of the issuing bank

5. Appendix 2 - UCP 600 Incorporation: Specific UCP 600 articles applicable to this letter of credit

6. Appendix 3 - Fee Schedule: Detailed breakdown of all applicable bank charges and fees

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

Linkedin in social icon imageX social icon image

Jurisdiction

South Africa

Publisher

Genie AI

Document Type

Letter of Credit

Sector

International Trade

Cost

Free to use
Relevant legal definitions
Advising Bank
Applicant
Banking Day
Beneficiary
Bill of Exchange
Bill of Lading
Clean Collection
Commercial Invoice
Complying Presentation
Confirmation
Confirming Bank
Credit
Documentary Credit
Documents
Draft
Expiry Date
Force Majeure
Goods
Honour
Issuing Bank
Letter of Credit
Negotiating Bank
Negotiation
Nominated Bank
Non-Complying Presentation
Original Documents
Packing List
Partial Shipment
Payment Terms
Presentation
Reimbursing Bank
Shipment
Shipping Documents
Sight Payment
Term Payment
Transhipment
UCP 600
Underlying Transaction
Clauses
Credit Amount and Currency
Availability and Expiry
Document Requirements
Payment Terms
Bank Charges
Force Majeure
Governing Law
Jurisdiction
Document Examination
Disclaimer
Assignment
Transfer Rights
Amendments
Notices
Compliance with Laws
Anti-Money Laundering
Sanctions
Default
Waiver
Severability
Indemnification
Confidentiality
Bank's Rights and Obligations
Applicant's Undertakings
Presentation Requirements
Document Verification
Dispute Resolution
Partial Shipments
Transhipment
Insurance Requirements
Relevant Industries

Banking & Financial Services

International Trade

Import/Export

Manufacturing

Retail

Commodities Trading

Agriculture

Mining

Energy

Shipping & Logistics

Construction

Wholesale Distribution

Relevant Teams

Trade Finance

International Banking

Credit Operations

Treasury

Legal & Compliance

Risk Management

Documentary Credits

Trade Operations

Commercial Banking

Global Transaction Services

Supply Chain Finance

Corporate Banking

Relevant Roles

Trade Finance Manager

International Trade Specialist

Banking Operations Manager

Credit Manager

Finance Director

Treasury Manager

Import/Export Manager

Commercial Banking Officer

Trade Operations Officer

Compliance Officer

Documentary Credits Specialist

Chief Financial Officer

Risk Manager

Supply Chain Manager

Procurement Manager

Industries
Banks Act 94 of 1990: The primary legislation regulating banking activities in South Africa, which provides the framework for banking operations including the issuance of Letters of Credit
Exchange Control Regulations 1961: Governs foreign exchange transactions and international payments, crucial for international Letters of Credit
Financial Intelligence Centre Act 38 of 2001: Deals with anti-money laundering requirements and Know Your Customer (KYC) procedures necessary for Letters of Credit
Consumer Protection Act 68 of 2008: Provides consumer protection framework that may apply when Letters of Credit involve consumer transactions
Uniform Customs and Practice for Documentary Credits (UCP 600): While not legislation per se, these ICC rules are universally accepted in South Africa for Letters of Credit transactions
Currency and Exchanges Act 9 of 1933: Provides the basic framework for currency transactions and exchanges in South Africa
National Payment System Act 78 of 1998: Regulates payment systems and mechanisms for settling financial obligations in South Africa
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

No matches found.

Letter Of Credit Cost

A South African banking document detailing all costs, fees, and charges associated with issuing and maintaining a letter of credit, in compliance with local banking regulations and international standards.

find out more

Standby Letter Of Credit Cost

A South African banking document detailing the complete fee structure and costs associated with issuing and maintaining a standby letter of credit, in accordance with local banking regulations.

find out more

Letter Of Credit Project (Finance)

A South African law-governed Letter of Credit document structured for project finance transactions, combining payment security with project-specific requirements and milestones.

find out more

At Sight Letter Of Credit

A South African-compliant Letter of Credit providing immediate payment upon presentation of compliant documents, governed by local banking regulations and UCP 600.

find out more

Lc Sight And Usance

A South African law-governed Letter of Credit document combining sight and usance payment options for international trade transactions.

find out more

Irrevocable Unconfirmed Letter Of Credit

An Irrevocable Unconfirmed Letter of Credit under South African law, providing a binding bank payment guarantee in international trade transactions.

find out more

Loan Against Letter Of Credit

South African law-governed agreement for providing loan financing against a Letter of Credit, typically used in international trade transactions.

find out more

Cash Credit Account Closure Letter

A formal South African banking document confirming the closure of a cash credit account, outlining closure terms and final settlement requirements under local banking regulations.

find out more

Utility Letter Of Credit

A South African law-governed bank guarantee document ensuring payment security for utility services, issued by a bank in favor of a utility provider.

find out more

Lc Agreement

A South African law-governed agreement establishing terms for a bank-issued Letter of Credit, facilitating secure international trade transactions.

find out more

Standby Guarantee

A South African law-governed bank guarantee that provides payment security upon documented default of specified obligations.

find out more

Irrevocable Letter Of Credit Cost

A South African law-governed banking instrument that provides guaranteed payment terms and associated costs for international trade transactions under an irrevocable letter of credit facility.

find out more

Credit Facility Offer Letter

A South African law-compliant formal letter from a financial institution offering credit facilities to a borrower, detailing terms, conditions, and statutory requirements.

find out more

Usance Lc Discounting

South African agreement for discounting Usance Letters of Credit, governing the early payment of LC proceeds at a discount under South African banking and trade finance regulations.

find out more

Transferring Bank In Lc

A South African law-governed agreement for a bank acting as Transferring Bank in Letter of Credit transactions, detailing transfer terms and regulatory compliance requirements.

find out more

Payment Against Lc

A South African law-governed agreement establishing payment terms and conditions through Letter of Credit in international trade transactions.

find out more

Non Transferable Letter Of Credit

A South African-compliant banking instrument that provides an irrevocable payment guarantee from a bank to a beneficiary, featuring non-transferability provisions.

find out more

Negotiation Bank In Lc

South African banking agreement governing LC document negotiation terms and conditions under local banking laws and international trade practices.

find out more

Cumulative Revolving Letter Of Credit

A South African law-governed banking instrument establishing a renewable credit facility where unused amounts accumulate, typically used in international trade transactions.

find out more

Transferable Lc At Sight

A South African law-governed transferable letter of credit that provides immediate payment upon document presentation, commonly used in international trade transactions.

find out more

Small Business Letter Of Credit

A South African banking instrument providing payment security for small business transactions, governed by local banking laws and regulations.

find out more

Secured Letter Of Credit

A South African law-governed banking instrument combining letter of credit features with security arrangements for enhanced protection in international trade transactions.

find out more

Local Letter Of Credit

A South African banking instrument providing payment security for domestic trade transactions, governed by local banking laws and regulations.

find out more

Loan Facility Letter

A South African banking document that outlines credit facility terms and conditions, serving as a formal offer of lending facilities in compliance with local banking regulations.

find out more

Non Operative Letter Of Credit

A South African banking instrument providing payment security in international trade transactions, governed by local banking laws and UCP 600.

find out more

Letter Of Credit 90 Days

A South African bank-issued payment guarantee instrument with 90-day terms, securing international trade transactions under local banking laws and UCP 600.

find out more

Letter Of Credit 60 Days

A South African bank-issued financial instrument guaranteeing payment to a seller after 60 days, subject to document compliance and governed by South African law.

find out more

Letter Of Credit 30 Days

A South African law-governed banking instrument guaranteeing payment within 30 days for international trade transactions, subject to document compliance.

find out more

Irrevocable Confirmed Lc At Sight

A South African-governed irrevocable confirmed Letter of Credit providing immediate payment upon document presentation, subject to UCP 600 rules and local banking regulations.

find out more

Inland Letter Of Credit

A South African banking instrument providing payment security in domestic trade transactions, governed by local banking and commercial law.

find out more

Import Documentary Letter Of Credit

A bank-issued trade finance document governed by South African and international banking laws, guaranteeing payment to an exporter upon presentation of compliant import documents.

find out more

Domestic Lc

A South African domestic Letter of Credit document that guarantees payment between local parties, governed by South African banking and commercial laws.

find out more

Discrepancy Letter Of Credit

A formal South African banking document acknowledging Letter of Credit discrepancies and requesting payment processing despite identified issues.

find out more

Digital Letter Of Credit

A South African law-governed digital payment guarantee instrument used in international trade, combining traditional letter of credit features with electronic transaction capabilities.

find out more

Business Letter Of Credit

A bank-issued payment guarantee document under South African law that ensures secure payment in commercial transactions, subject to document compliance.

find out more

Beneficiary In Letter Of Credit

A South African law-governed financial instrument issued by a bank guaranteeing payment to a seller (beneficiary) in international trade upon presentation of compliant documents.

find out more

Bank Guarantee And Letter Of Credit

South African law-compliant template for Bank Guarantees and Letters of Credit, establishing terms and conditions for financial institutions providing banking guarantees and documentary credits.

find out more

Unsecured Letter Of Credit

A South African law-governed banking instrument providing an unsecured payment guarantee from a bank to a beneficiary upon presentation of specified documents.

find out more

Trade Finance Letter Of Credit

A bank-issued payment guarantee document governed by South African law and UCP 600, providing security in international trade transactions.

find out more

Unconditional Letter Of Credit

A South African law-governed irrevocable bank undertaking to make payment against compliant documents, subject to UCP 600 and local banking regulations.

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

Generate Legal Docs Free

Create your first 2 documents for free
You keep IP ownership of your information
Your data doesn't train Genie's AI
2 Docs LeftAccess Now
*No registration required