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The Revolving Letter of Credit is an essential trade finance instrument in Malaysian business operations, particularly useful for ongoing trading relationships with regular shipment schedules. This document type is commonly employed when there are repeated transactions between the same parties over an extended period, offering efficiency and cost savings compared to issuing multiple standalone letters of credit. 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. It includes detailed specifications about credit limits, reinstatement periods, required documentation, and trading terms, making it particularly valuable for businesses engaged in regular import/export activities. The revolving nature of the credit facility makes it especially suitable for businesses with predictable, recurring trade cycles.

1. Letter Header: Issuing bank's letterhead, date, reference number, and type of credit (Revolving Letter of Credit)

2. Parties Identification: Full details of the applicant (buyer), beneficiary (seller), and issuing bank

3. Credit Amount: Maximum credit amount and currency, including the revolving terms and reinstatement conditions

4. Validity Period: Expiry date and place, plus details of revolving cycles

5. Documents Required: List of required documents for presentation (shipping documents, commercial invoice, etc.)

6. Goods Description: Detailed description of the goods or services covered by the LC

7. Payment Terms: Specification of payment terms, tenor, and negotiation conditions

8. Shipping Terms: Details of shipment, latest shipment date, partial shipments, transhipment

9. Bank Charges: Allocation of banking charges and fees

10. Governing Law: Specification of Malaysian law and UCP 600 application

11. Authentication: Authorized signatures and bank stamps