Document background
The Letter of Credit Facility Agreement is a crucial document in international trade finance, particularly relevant under Danish jurisdiction where it must comply with both local financial regulations and EU requirements. This agreement is typically used when a company requires regular access to letters of credit for its international trade operations, establishing a formal facility rather than arranging letters of credit on a one-off basis. The document outlines the complete relationship between the bank and the borrower, including facility limits, fees, conditions for issuance, and ongoing obligations. It needs to align with Danish banking regulations, the Danish Financial Business Act, and incorporate international standards like the UCP 600. The agreement is particularly important for companies engaged in import/export activities, providing them with a reliable framework for their international trade operations while ensuring compliance with Danish legal requirements.
