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Letter Of Credit And Standby Letter Of Credit
"I need a Letter of Credit and Standby Letter of Credit document for a Malaysian manufacturing company importing machinery worth USD 2.5 million from Germany, with payment to be made in three installments and requiring both quality inspection certificates and performance guarantees."
1. Issuing Bank Details: Complete identification and contact information of the issuing bank
2. Beneficiary Details: Full name, address, and contact information of the beneficiary
3. Applicant Details: Complete information about the party requesting the LC/SLOC
4. Credit Number and Type: Unique LC/SLOC reference number and specification of whether it's a commercial LC or SLOC
5. Date of Issue: Date when the LC/SLOC is issued
6. Date and Place of Expiry: Expiration date and location where the LC/SLOC must be presented
7. Credit Amount: Specified amount and currency of the LC/SLOC
8. Available With/By: Specification of where and how the credit is available (payment, acceptance, negotiation)
9. Partial Shipments/Drawings: Whether partial shipments or drawings are allowed or prohibited
10. Transhipment: Whether transhipment is allowed or prohibited
11. Documents Required: Detailed list of all required documents for presentation
12. Presentation Period: Time period within which documents must be presented after shipment
13. Description of Goods/Services: Detailed description of the underlying transaction
14. Special Conditions: Any additional terms, conditions, or requirements
1. Transferability Clause: Include when the LC/SLOC needs to be transferable to another beneficiary
2. Revolving Credit Terms: Include for revolving LCs that automatically renew
3. Red Clause Provisions: Include when advance payment facilities are required
4. Green Clause Provisions: Include when storage facility payments are needed
5. Back-to-Back Arrangements: Include when the LC/SLOC is part of a back-to-back arrangement
6. Confirmation Instructions: Include when confirmation by another bank is required
7. Reimbursement Instructions: Include when specific reimbursement arrangements are needed
8. Force Majeure Clause: Include when specific force majeure provisions are required beyond UCP/ISP rules
9. Governing Law Override: Include when specific governing law provisions different from UCP/ISP are needed
1. Schedule A - Commercial Invoice Requirements: Detailed specifications for acceptable commercial invoice format and content
2. Schedule B - Transport Document Requirements: Specific requirements for bills of lading or other transport documents
3. Schedule C - Insurance Document Requirements: Details of required insurance coverage and acceptable documentation
4. Schedule D - Inspection Certificate Requirements: Specifications for required inspection certificates and authorized inspectors
5. Appendix 1 - Form of Demand: Standard format for presentation of demand under the LC/SLOC
6. Appendix 2 - Authorized Signatories: List of authorized signatories and specimen signatures
7. Appendix 3 - Fee Schedule: Detailed breakdown of all applicable fees and charges
8. Appendix 4 - Amendment Template: Standard format for requesting and processing amendments
Authors
Banking and Financial Services
International Trade
Import/Export
Manufacturing
Commodities Trading
Shipping and Logistics
Energy and Resources
Construction
Agricultural Trade
Wholesale Distribution
Legal
Trade Finance
International Banking
Credit Risk
Compliance
Treasury
Operations
Documentary Credits
Trade Operations
Financial Control
Trade Finance Manager
International Banking Officer
Credit Risk Officer
Documentary Credits Specialist
Trade Operations Manager
Compliance Officer
Legal Counsel
Treasury Manager
Financial Controller
Import/Export Manager
Trade Finance Analyst
Banking Relationship Manager
Documentary Collections Officer
International Trade Specialist
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