The Divisible Letter of Credit is a specialized form of documentary credit utilized in international trade transactions where goods are delivered in installments or where multiple drawings are required. This instrument, governed by Maltese law and international banking practices, enables exporters to receive payment for partial shipments while providing importers with the flexibility to manage cash flow and logistics more effectively. The document incorporates provisions from Malta's Banking Act, EU regulations, and the UCP 600, making it particularly suitable for complex international trade transactions involving staged deliveries or multiple payment phases. It includes detailed terms for partial drawings, specific documentary requirements for each presentation, and conditions for accepting or rejecting partial shipments.
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1. Letter Date and Reference: Date of issuance and unique reference number of the Letter of Credit
2. Issuing Bank Details: Complete details of the bank issuing the Letter of Credit
3. Beneficiary Details: Full name and address of the party in whose favor the Letter of Credit is issued
4. Applicant Details: Full name and address of the party requesting the Letter of Credit
5. Credit Amount and Currency: Total value of the Letter of Credit and currency specification
6. Divisibility Terms: Specific conditions and terms regarding the divisible nature of the credit
7. Partial Shipment Terms: Conditions and requirements for partial shipments
8. Drawing Terms: Specifications for how and when drawings can be made under the credit
9. Required Documents: List of documents required for each drawing under the credit
10. Expiry Date and Place: Validity period of the Letter of Credit and location for presentation
11. Governing Law and UCP Reference: Reference to Maltese law and UCP 600 application
1. Advising Bank Details: Details of the advising bank if the credit is advised through another bank
2. Confirmation Instructions: Instructions regarding confirmation if the credit is to be confirmed
3. Transferability Clause: Terms for transfer if the credit is transferable
4. Revolving Terms: Specific terms if the credit is both divisible and revolving
5. Special Conditions: Any additional terms or conditions specific to the transaction
6. Back-to-Back Provisions: Terms for back-to-back arrangements if applicable
7. Red Clause Provisions: Terms for advance payment if red clause provisions are included
1. Schedule A - Documentary Requirements: Detailed list of required documents and their specifications for each drawing
2. Schedule B - Drawing Schedule: Predetermined schedule of permitted drawings and their maximum amounts
3. Schedule C - Shipping Terms: Detailed shipping requirements and schedule for partial shipments
4. Appendix 1 - Form of Drawing Request: Standard format for submitting drawing requests under the credit
5. Appendix 2 - Form of Documentary Presentation: Standard format for presenting documents under the credit
6. Appendix 3 - Form of Beneficiary Certificate: Template for beneficiary certifications required for drawings
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
International Trade
Manufacturing
Shipping and Logistics
Import/Export
Commodities Trading
Agricultural Products
Industrial Equipment
Construction Materials
Textile Industry
Energy and Resources
Wholesale Distribution
Relevant Teams
Trade Finance
International Banking
Documentary Credits
Credit Risk
Legal and Compliance
Treasury Operations
Trade Operations
Client Relations
Financial Control
Supply Chain Operations
Relevant Roles
Trade Finance Manager
International Banking Officer
Documentary Credits Specialist
Import/Export Manager
Treasury Manager
Credit Risk Officer
Trade Operations Manager
Banking Relationship Manager
Compliance Officer
Financial Controller
Supply Chain Manager
Chief Financial Officer
International Trade Specialist
Banking Operations Manager
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