Document background
The LC Facility Agreement is essential for businesses engaged in international trade and requiring documentary credits for their operations. This agreement, governed by Swiss law, provides the legal framework for a bank or banking syndicate to issue letters of credit up to an agreed facility amount. It encompasses all necessary terms including facility limits, conditions for issuance, fees, security arrangements, and compliance requirements. The document is particularly valuable in Switzerland's context as a major international banking center, incorporating both local regulatory requirements and international banking practices (UCP 600). The agreement typically supports import/export operations, large-scale trading activities, or project financing where letters of credit are required as payment security or performance support.
