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Irrevocable Letter Of Credit Template for New Zealand

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Key Requirements PROMPT example:

Irrevocable Letter Of Credit

"I need an Irrevocable Letter of Credit for NZD 500,000 to cover the export of dairy products from New Zealand to Singapore, with partial shipments allowed and requiring marine insurance coverage, expiring March 15, 2025."

Document background
The Irrevocable Letter of Credit is a fundamental instrument in international trade finance, particularly vital in New Zealand's export-oriented economy. It provides a secure payment mechanism where the issuing bank makes an irrevocable commitment to pay the beneficiary upon presentation of compliant documents, regardless of any disputes in the underlying transaction. This document is typically used when parties require a high level of payment security in international transactions, especially when dealing with new trading partners or in high-value transactions. The instrument is governed by New Zealand law while incorporating international banking practices under UCP 600, making it a globally recognized and accepted form of payment security. It includes detailed specifications for payment conditions, required documents, and compliance requirements, offering protection to both importers and exporters in international trade transactions.
Suggested Sections

1. Letter of Credit Number: Unique reference number assigned by the issuing bank

2. Date of Issue: Date when the Letter of Credit is issued

3. Applicant Details: Full name and address of the party requesting the Letter of Credit (typically the buyer)

4. Beneficiary Details: Full name and address of the party in whose favor the Letter of Credit is issued (typically the seller)

5. Issuing Bank Details: Name and address of the bank issuing the Letter of Credit

6. Amount and Currency: The credit amount and currency, stated in both figures and words

7. Expiry Date: The date and place of expiry of the Letter of Credit

8. Credit Available With: Specification of how and where the credit is available (e.g., by sight payment, deferred payment, acceptance, or negotiation)

9. Documents Required: Detailed list of documents that must be presented for payment

10. Shipment Terms: Details of shipment including latest shipment date and partial shipments/transhipment conditions

11. Description of Goods/Services: Brief description of the goods or services being traded

12. Payment Terms: Specific conditions under which payment will be made

13. Special Conditions: Any additional terms or conditions that apply to this Letter of Credit

Optional Sections

1. Advising Bank Details: Details of the bank advising the credit to the beneficiary, used when there's an intermediary bank

2. Confirming Bank Details: Details of the bank adding its confirmation to the credit, included when additional bank security is required

3. Transferability Clause: Clause indicating whether the Letter of Credit is transferable, included when the credit needs to be transferable

4. Back-to-Back Provisions: Provisions for back-to-back credit arrangements, used in specific trading situations

5. Red Clause Provisions: Special provisions for advance payment, included when advance payments are required

6. Green Clause Provisions: Provisions for storage of goods, included when warehouse storage is part of the arrangement

7. Revolving Credit Terms: Terms for revolving credit facility, included when the credit is revolving rather than single-use

Suggested Schedules

1. Schedule A - Document Requirements: Detailed checklist of required documents and their specific requirements

2. Schedule B - Commercial Invoice Requirements: Specific requirements for the format and content of commercial invoices

3. Schedule C - Transport Document Requirements: Detailed requirements for bills of lading or other transport documents

4. Schedule D - Insurance Document Requirements: Specific requirements for insurance documents when required

5. Appendix 1 - UCP 600 Disclaimers: Standard disclaimers and provisions as per UCP 600

6. Appendix 2 - Bank's Standard Terms: Issuing bank's standard terms and conditions for Letters of Credit

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

International Trade

Banking and Financial Services

Manufacturing

Agriculture and Food Export

Retail and Wholesale

Mining and Resources

Construction and Infrastructure

Technology and Electronics

Textiles and Apparel

Automotive

Chemical and Pharmaceuticals

Energy

Commodities Trading

Relevant Teams

Finance

International Trade

Treasury

Procurement

Supply Chain

Legal

Risk Management

Compliance

Trade Operations

Documentary Credits

Commercial Banking

Relevant Roles

Trade Finance Manager

Import/Export Manager

Chief Financial Officer

Finance Director

Treasury Manager

International Business Development Manager

Procurement Manager

Supply Chain Manager

Trade Operations Officer

Documentary Credits Specialist

Banking Relationship Manager

Commercial Banking Officer

International Trade Specialist

Risk Manager

Compliance Officer

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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