Document background
The Evergreen Letter of Credit is a crucial financial instrument used in international trade transactions where parties require ongoing payment security without the administrative burden of regular renewals. This document is specifically adapted to comply with Danish law and banking regulations while incorporating international banking practices under UCP 600. It is typically used in long-term trading relationships where the applicant (usually an importer) needs to provide continuous payment security to their trading partner (the beneficiary/exporter). The automatic renewal feature of the Evergreen Letter of Credit distinguishes it from standard Letters of Credit, making it particularly suitable for recurring transactions or ongoing trading relationships. The document includes comprehensive provisions for drawing conditions, document requirements, automatic renewal mechanisms, and cancellation procedures, all structured within the framework of Danish legal requirements and international banking standards.
