Document background
An Irrevocable Non-Transferable Letter of Credit is a crucial financial instrument used in international trade transactions where parties seek secure payment arrangements. This document type is particularly relevant when dealing with cross-border transactions involving Swiss banks or parties requiring the security of Swiss banking laws. The letter of credit provides an irrevocable commitment from the issuing bank to pay the beneficiary upon presentation of compliant documents, while its non-transferable nature ensures that payment rights cannot be assigned to third parties. Under Swiss jurisdiction, these instruments are governed by the Federal Banking Act and related regulations, often incorporating UCP 600 rules, making them particularly attractive for high-value international transactions where payment security is paramount. The document typically includes detailed specifications about payment conditions, required documentation, shipment terms, and compliance requirements.
