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Standby Letter Of Credit And Bank Guarantee
"I need a Standby Letter of Credit and Bank Guarantee document for a construction project in Kuala Lumpur, with a guarantee amount of 5 million MYR, where my company is the beneficiary and ABC Construction Sdn Bhd is the applicant, with the instrument expiring on March 15, 2025."
1. Issuing Bank Details: Complete details of the bank issuing the SBLC/guarantee including full name, address, and reference numbers
2. Instrument Type and Number: Clear specification of whether it's an SBLC or Bank Guarantee and its unique reference number
3. Beneficiary Details: Full details of the party in whose favor the SBLC/guarantee is issued
4. Applicant Details: Complete information about the party requesting the SBLC/guarantee
5. Amount and Currency: The maximum amount and currency of the SBLC/guarantee, written in both figures and words
6. Effective Date and Expiry: Clear statement of when the instrument becomes effective and its expiry date/conditions
7. Purpose/Underlying Transaction: Description of the underlying transaction or obligation being guaranteed
8. Drawing/Demand Conditions: Specific conditions and documentation required for making a claim under the instrument
9. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and relevant jurisdiction
10. Form of Demand: The exact format and content requirements for making a valid demand under the instrument
1. Transferability Clause: Include when the SBLC/guarantee needs to be transferable to another beneficiary
2. Reduction Clause: Used when the amount of the SBLC/guarantee can be reduced over time or upon certain events
3. Counter-Guarantee Provisions: Required when there's a counter-guarantee from another bank involved
4. Multiple Drawing Provisions: Include when multiple partial drawings are to be permitted
5. Language Clause: Required when the document needs to be issued in multiple languages
6. Force Majeure Clause: Optional clause defining circumstances beyond control that might affect the instrument
7. Electronic Presentation Clause: Include when electronic presentation of documents is acceptable
1. Schedule 1 - Form of Demand: Template for the written demand to be submitted by the beneficiary when claiming under the instrument
2. Schedule 2 - Required Documents: List and formats of all documents required to be presented with a demand
3. Schedule 3 - Form of Reduction Notice: Template for notifications of reduction in the guarantee/credit amount (if applicable)
4. Appendix A - Underlying Contract Reference: Details or extract of the underlying contract or obligation being guaranteed
5. Appendix B - Special Instructions: Any special banking instructions or SWIFT requirements for the instrument
Authors
Banking and Financial Services
International Trade
Construction
Manufacturing
Energy and Utilities
Infrastructure Development
Telecommunications
Mining and Resources
Oil and Gas
Real Estate Development
Aviation
Maritime and Shipping
Defense Contracting
Legal
Finance
Treasury
Trade Finance
Risk Management
Compliance
International Banking
Corporate Banking
Project Finance
Commercial Banking
Credit Administration
Chief Financial Officer
Treasury Manager
Trade Finance Manager
Finance Director
Banking Relationship Manager
Credit Risk Manager
International Trade Specialist
Financial Controller
Compliance Officer
Legal Counsel
Contract Manager
Project Finance Manager
Corporate Banking Officer
Documentary Credits Specialist
Commercial Banking Manager
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