Irrevocable Revolving Letter Of Credit for South Africa

Irrevocable Revolving Letter Of Credit Template for South Africa

A comprehensive banking instrument governed by South African law and international banking practices (UCP 600), which provides a secure method of payment in international trade transactions. This document represents a bank's irrevocable commitment to pay the beneficiary a specified sum that can be reinstated after use, either automatically or upon fulfillment of certain conditions. The revolving nature allows for multiple drawings up to a certain limit during the validity period, making it particularly suitable for regular, recurring shipments or ongoing trade relationships.

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What is a Irrevocable Revolving Letter Of Credit?

The Irrevocable Revolving Letter of Credit is a specialized financial instrument used in international trade transactions under South African jurisdiction. It combines the security of a traditional letter of credit with the flexibility of a revolving facility, making it particularly valuable for ongoing trade relationships with regular shipments. The document provides an irrevocable commitment from a bank to pay the beneficiary, with the unique feature that the credit limit is automatically or conditionally reinstated after each utilization. This type of letter of credit is governed by South African law and follows the Uniform Customs and Practice for Documentary Credits (UCP 600), ensuring alignment with international banking standards while complying with local regulatory requirements, including those set by the South African Reserve Bank.

What sections should be included in a Irrevocable Revolving Letter Of Credit?

1. Letter Reference Details: Unique letter of credit number, date, and bank reference information

2. Beneficiary Details: Full name and address of the party in whose favor the letter of credit is issued

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

4. Issuing Bank Details: Full name, address, and contact information of the issuing bank

5. Credit Amount and Currency: Specified amount and currency of the letter of credit, including maximum limit

6. Revolving Terms: Specific terms of how the credit revolves (time basis or value basis) and reinstatement conditions

7. Expiry Details: Expiration date and place of the letter of credit

8. Available With/By: Terms of availability and method of payment (sight, deferred payment, acceptance, or negotiation)

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

10. Shipment Terms: Latest shipment date and any partial shipment or transhipment provisions

11. Presentation Period: Timeline for document presentation after shipment

12. Governing Law and UCP Declaration: Reference to South African law and UCP 600 governance

13. Authorization: Bank officer signatures and authorization stamps

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

1. Advising Bank Details: Include when a second bank is involved in advising the credit to the beneficiary

2. Confirmation Instructions: Include when confirmation by another bank is requested or authorized

3. Transfer Conditions: Include when the credit is transferable to other beneficiaries

4. Special Conditions: Include when there are additional terms or conditions specific to the transaction

5. Red Clause Provisions: Include when advance payment provisions are required

6. Back-to-Back Arrangements: Include when the credit is part of a back-to-back arrangement

7. Green Clause Provisions: Include when storage of goods provisions are required

What schedules should be included in a Irrevocable Revolving Letter Of Credit?

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

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

3. Schedule C - Payment Schedule: Details of revolving periods and reinstatement conditions

4. Schedule D - Fee Structure: Breakdown of all applicable banking charges and fees

5. Appendix 1 - Standard Banking Instructions: Standard operational instructions for document handling and payment processing

6. Appendix 2 - Specimen Signatures: Authorized signatures for the letter of credit operations

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

South Africa

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Relevant Industries

Banking and Financial Services

International Trade

Import/Export

Manufacturing

Retail

Commodities Trading

Agriculture

Mining

Energy

Telecommunications

Construction

Logistics and Transportation

Relevant Teams

Treasury

International Trade Finance

Corporate Banking

Risk Management

Legal

Compliance

Finance

Procurement

Supply Chain

Operations

Commercial

Relevant Roles

Trade Finance Manager

International Business Director

Treasury Manager

Chief Financial Officer

Import/Export Manager

Trade Operations Officer

Documentary Credits Specialist

Banking Relationship Manager

Financial Controller

Commercial Director

Supply Chain Manager

Procurement Manager

Credit Risk Officer

Trade Finance Analyst

Corporate Banking Officer

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

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