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A Documentary Letter of Credit is a fundamental instrument in international trade finance, providing security and payment assurance to parties involved in cross-border transactions. Used extensively in Irish and international commerce, it represents a bank's irrevocable commitment to pay the seller (beneficiary) a specified amount upon presentation of documents that comply strictly with the credit terms. The document, governed by Irish law and EU regulations, incorporates international banking practices through UCP 600 rules, making it a standardized yet flexible instrument. It's particularly valuable when parties are in different jurisdictions or unfamiliar with each other's creditworthiness, as it substitutes the bank's credit standing for that of the buyer. The document includes detailed specifications about payment terms, required documentation, shipping conditions, and compliance requirements, serving as a critical risk mitigation tool in international trade.

1. Letter of Credit Number and Date: Unique reference number and issuance date of the Letter of Credit

2. Applicant Details: Full name and address of the party requesting the Letter of Credit (usually the buyer)

3. Beneficiary Details: Full name and address of the party in whose favor the Letter of Credit is issued (usually the seller)

4. Issuing Bank Details: Name and address of the bank issuing the Letter of Credit

5. Amount and Currency: The maximum amount and currency of the Letter of Credit, stated in both figures and words

6. Expiry Date and Place: The final date and location for presentation of documents

7. Form of Credit: Specification of whether the credit is irrevocable (as per UCP 600) and any transfer conditions

8. Available With/By: Specifies the bank with which the credit is available and the manner of availability (sight, deferred payment, acceptance, or negotiation)

9. Partial Shipments/Transhipment: Whether partial shipments and/or transhipment are allowed or prohibited

10. Loading/Dispatch/Taking in Charge: Place of taking in charge, dispatch, or loading

11. For Transportation To: Port of discharge or final destination

12. Latest Date of Shipment: Final date by which shipment must be made

13. Description of Goods/Services: Brief description of the goods or services being traded

14. Required Documents: Detailed list of all documents required for presentation and their requirements

15. Additional Conditions: Any special conditions or terms that must be met

16. Charges: Specification of which party bears the various banking charges