Irrevocable Unconfirmed Letter Of Credit for South Africa

Irrevocable Unconfirmed Letter Of Credit Template for South Africa

This document represents an Irrevocable Unconfirmed Letter of Credit governed by South African law and international banking practices (UCP 600). It serves as a binding payment undertaking from the issuing bank to pay the beneficiary upon presentation of compliant documents. The irrevocable nature means it cannot be amended or cancelled without the agreement of all parties involved. Being unconfirmed, it carries the sole guarantee of the issuing bank without additional confirmation from another bank. The document incorporates South African banking regulations, exchange control requirements, and international trade provisions while following the established formats and requirements under UCP 600.

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What is a Irrevocable Unconfirmed Letter Of Credit?

The Irrevocable Unconfirmed Letter of Credit is a crucial trade finance instrument used in international commercial transactions where parties seek secure payment methods. It provides a binding commitment from the issuing bank to pay the beneficiary upon presentation of compliant documents, offering security to sellers while allowing buyers to maintain control over payment conditions. The document follows South African banking and trade regulations while adhering to international UCP 600 standards. It's particularly valuable in cross-border transactions where parties may not have established trading relationships or where the regulatory environment requires formal banking channels for international payments. The unconfirmed nature means the beneficiary relies solely on the issuing bank's undertaking, while its irrevocability provides certainty that the terms cannot be modified without mutual consent.

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

1. Letter Reference and Date: Unique reference number and issuance date of the Letter of Credit

2. Issuing Bank Details: Complete name and address of the issuing bank

3. Applicant Details: Full name and address of the party requesting the Letter of Credit

4. Beneficiary Details: Full name and address of the party in whose favor the Letter of Credit is issued

5. Credit Amount and Currency: Specified amount and currency of the Letter of Credit

6. Form of Credit: Specification that this is an Irrevocable Unconfirmed Letter of Credit

7. Expiry Date and Place: Clear statement of expiry date and location for document presentation

8. Available With: Specification of where and how the credit is available (payment, acceptance, negotiation)

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

10. Shipment Terms: Details of shipment including latest shipment date and partial shipments

11. Description of Goods/Services: Precise description of the goods or services covered by the Letter of Credit

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

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

1. Transferability Clause: To be included if the Letter of Credit is transferable

2. Red Clause: Include when advance payment to the beneficiary is permitted

3. Green Clause: Include when storage of goods is involved with advance payment

4. Revolving Credit Terms: Include for credits that restore to original amount after use

5. Back-to-Back Provisions: Include when the credit supports a back-to-back arrangement

6. Special Instructions: Any additional specific requirements or conditions

7. Reimbursement Instructions: Include when specific reimbursement arrangements are required

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

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

2. Schedule B - Goods Specification: Detailed technical specifications of goods or services

3. Schedule C - Payment Terms: Detailed payment calculations and conditions

4. Appendix 1 - Draft Format: Prescribed format for drafts to be drawn under the credit

5. Appendix 2 - Presentation Forms: Standard forms to be used for document presentation

6. Appendix 3 - Bank Contacts: Contact details for all relevant banking departments

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 legal definitions
Clauses
Relevant Industries

Banking and Financial Services

International Trade

Import/Export

Manufacturing

Retail

Commodities Trading

Agriculture

Mining

Energy

Logistics and Transportation

Maritime Industry

Insurance

Relevant Teams

Trade Finance

International Banking

Legal

Compliance

Treasury

Risk Management

Operations

Commercial Banking

Documentary Credits

International Trade Operations

Supply Chain

Procurement

Finance

Relevant Roles

Trade Finance Manager

International Trade Specialist

Documentary Credits Officer

Export Manager

Import Manager

Compliance Officer

Banking Operations Manager

Treasury Manager

Chief Financial Officer

Finance Director

Trade Operations Specialist

Credit Risk Manager

Commercial Banking Manager

Supply Chain Manager

Procurement Manager

Legal Counsel

Banking Relationship Manager

International Business Development 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

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