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Letter Of Credit And Standby Letter Of Credit Template for Malaysia

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Key Requirements PROMPT example:

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."

Document background
Letter of Credit and Standby Letter of Credit documents are essential financial instruments used in international trade and banking transactions under Malaysian jurisdiction. These documents are utilized when parties seek secure payment mechanisms or performance guarantees in commercial transactions. The LC serves as a primary payment method in trade finance, while the SLOC functions as a contingent payment guarantee. The document must comply with Malaysian banking regulations, particularly the Financial Services Act 2013 and Bank Negara Malaysia guidelines, while also adhering to international standards such as UCP 600 and ISP98. It typically includes detailed specifications about payment terms, required documentation, presentation conditions, and compliance requirements, providing security and assurance to all parties involved in the transaction.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















































Clauses






























Relevant Industries

Banking and Financial Services

International Trade

Import/Export

Manufacturing

Commodities Trading

Shipping and Logistics

Energy and Resources

Construction

Agricultural Trade

Wholesale Distribution

Relevant Teams

Legal

Trade Finance

International Banking

Credit Risk

Compliance

Treasury

Operations

Documentary Credits

Trade Operations

Financial Control

Relevant Roles

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

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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