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Revolving Standby Letter Of Credit
"I need a Revolving Standby Letter of Credit for our manufacturing company to secure regular monthly shipments of raw materials from our German supplier, with a maximum credit amount of €2 million that revolves monthly and expires on December 31, 2025."
1. Letter Date and Reference: Opening section containing date of issuance and unique reference number
2. Beneficiary Details: Full name and address of the beneficiary
3. Applicant Details: Full name and address of the applicant requesting the SBLC
4. Credit Amount and Currency: Specification of the maximum amount and currency of the SBLC
5. Revolving Terms: Details of how and when the credit revolves, including reinstatement conditions
6. Expiry Date: Clear statement of the expiry date and conditions
7. Drawing Conditions: Specific conditions and documentation required for drawing under the SBLC
8. Presentation Requirements: Format and location for presentation of documents
9. Governing Law and Rules: Reference to German law and applicable rules (UCP 600/ISP98)
10. Bank Details: Issuing bank's details and any corresponding bank information
1. Automatic Extension Clause: Include when the SBLC needs to automatically extend beyond its initial expiry date
2. Partial Drawings: Include when partial drawings are to be permitted
3. Transfer Provisions: Include when the SBLC needs to be transferable
4. Multiple Beneficiary Provisions: Include when there are multiple beneficiaries
5. Special Payment Conditions: Include when specific payment timing or methods are required
6. Force Majeure Clause: Include when specific force majeure provisions are needed beyond standard UCP/ISP rules
1. Schedule 1 - Form of Demand: Standard format for drawing requests under the SBLC
2. Schedule 2 - Required Documents: Detailed list of documents required for drawing
3. Schedule 3 - Revolving Schedule: Detailed schedule of revolving dates and amounts if complex
4. Appendix A - Authorized Signatories: List of persons authorized to make drawings
5. Appendix B - Special Conditions: Any additional terms or conditions specific to this SBLC
Authors
Banking and Financial Services
International Trade
Manufacturing
Construction
Energy
Commodities Trading
Retail
Telecommunications
Infrastructure
Real Estate
Shipping and Logistics
Agricultural Trade
Legal
Finance
Treasury
Trade Finance
Risk Management
Compliance
International Banking
Corporate Banking
Documentary Credits
Trade Operations
Trade Finance Manager
Chief Financial Officer
Treasury Manager
Finance Director
Credit Manager
Banking Relationship Manager
International Trade Specialist
Commercial Banking Officer
Risk Management Officer
Documentary Credits Specialist
Corporate Finance Manager
Legal Counsel
Compliance Officer
Trade Operations Manager
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