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This document is essential in international trade transactions where parties seek a secure payment method while operating under Danish jurisdiction. A Recourse Letter of Credit is specifically used when the issuing bank requires full recourse rights against the applicant (typically the buyer) in case of any payment made under the credit. The document is particularly relevant when dealing with cross-border transactions where the parties seek the security of a bank's payment undertaking while ensuring compliance with Danish legal requirements and international banking practices. It includes detailed provisions regarding document presentation, payment terms, and the bank's recourse rights, incorporating both Danish law requirements and UCP 600 guidelines. This type of letter of credit is commonly used when the bank requires additional security or when the applicant's creditworthiness necessitates explicit recourse provisions.

1. Bank Details and Reference: Opening section identifying the issuing bank, letter of credit reference number, and date

2. Applicant Information: Full details of the party requesting the letter of credit

3. Beneficiary Information: Complete details of the party in whose favor the letter of credit is issued

4. Credit Amount and Currency: Specification of the maximum amount and currency of the letter of credit

5. Credit Terms: Key terms including expiry date, place of expiry, and available payment terms

6. Required Documents: Detailed list of documents required for presentation under the letter of credit

7. Recourse Provisions: Explicit terms regarding the bank's right of recourse against the applicant

8. Reimbursement Terms: Details of how and when the bank will be reimbursed by the applicant

9. Governing Law and Jurisdiction: Specification of Danish law as governing law and relevant jurisdiction