Document background
The Letter of Credit and Guarantee is a sophisticated financial instrument used in international trade and complex commercial transactions under Irish law. This document type is particularly valuable when parties seek enhanced security in their transactions, combining the documentary credit aspects of traditional letters of credit with additional guarantee provisions. It is commonly used in high-value international trade transactions, construction projects, or when there's a need for both payment assurance and performance guarantees. The document typically includes detailed terms about credit amount, payment conditions, document requirements, and specific guarantee provisions. Operating within the Irish legal framework and EU regulations, while following international banking standards such as UCP 600, this instrument provides a robust mechanism for securing commercial obligations and facilitating international trade.
