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Counter Standby Letter Of Credit Template for Netherlands

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Key Requirements PROMPT example:

Counter Standby Letter Of Credit

"I need a Counter Standby Letter of Credit under Dutch law for a construction project in Rotterdam, with a validity period until March 2025, including specific provisions for staged payments and additional security requirements against contractor default."

Document background
The Counter Standby Letter of Credit is a crucial instrument in international banking and trade finance, particularly when multiple jurisdictions are involved. Under Dutch law, this document serves as a bank's commitment to reimburse another bank that has issued a primary Standby Letter of Credit. It's typically used when a bank requires back-to-back support for its SBLC issuance, often in cross-border transactions where the applicant's relationship bank differs from the beneficiary's preferred bank. The document specifies payment triggers, validity periods, documentation requirements, and compliance with both Dutch financial regulations and international banking practices such as ISP98 or UCP 600. This instrument is particularly valuable in complex international transactions where multiple layers of security and guarantee are required.
Suggested Sections

1. Letter Reference and Date: Unique reference number and date of the Counter Standby Letter of Credit

2. Issuing Bank Details: Complete details of the bank issuing the Counter Standby Letter of Credit

3. Applicant Details: Full identification of the party requesting the Counter Standby Letter of Credit

4. Beneficiary Details: Complete information of the beneficiary bank (issuer of the primary SBLC)

5. Reference to Primary SBLC: Details of the original Standby Letter of Credit this counter guarantee relates to

6. Counter Guarantee Amount: Specified amount and currency of the counter guarantee

7. Validity Period: Effective date and expiry date of the Counter SBLC

8. Terms of Payment: Conditions under which payment will be made and reimbursement obligations

9. Documentation Requirements: Specific documents required for claiming under the Counter SBLC

10. Governing Law and Jurisdiction: Specification of Dutch law as governing law and relevant jurisdiction

Optional Sections

1. Security Arrangements: Details of any collateral or security provided by the applicant, used when additional security is required

2. Transfer Provisions: Terms regarding transferability of the Counter SBLC, included when transfer rights are permitted

3. Special Payment Conditions: Any specific payment arrangements or conditions, used for complex payment structures

4. Force Majeure Provisions: Specific provisions for force majeure events, included when required by the transaction context

5. Amendment Procedures: Specific procedures for amendments, included when flexibility might be needed

6. Counter-Counter Guarantee Provisions: Terms for any further counter guarantees, used in complex multi-party arrangements

Suggested Schedules

1. Specimen Signature Form: Authorized signatures for the applicant and any other relevant parties

2. Form of Demand: Standard format for making a claim under the Counter SBLC

3. Copy of Primary SBLC: Copy of the original Standby Letter of Credit being counter-guaranteed

4. Payment Instructions: Detailed banking information for payments and reimbursements

5. Security Documents: If applicable, copies of security or collateral documentation

6. Required Declarations: Templates for any required declarations or certifications

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

Manufacturing

Energy and Utilities

Construction and Infrastructure

Shipping and Maritime

Import/Export

Commodities Trading

Telecommunications

Real Estate Development

Relevant Teams

Legal

Treasury

Trade Finance

Risk Management

International Banking

Compliance

Corporate Banking

Credit Risk

Transaction Banking

Documentary Credits

Finance Operations

Relevant Roles

Trade Finance Manager

Treasury Manager

Chief Financial Officer

Risk Management Officer

International Banking Officer

Documentary Credits Specialist

Corporate Banking Manager

Financial Controller

International Trade Specialist

Compliance Officer

Legal Counsel

Credit Risk Manager

Transaction Banking Officer

Export Finance Manager

Senior Banking Executive

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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