Document background
The Revolving Letter of Credit is a specialized banking instrument designed to facilitate recurring international trade transactions. This document is particularly useful for businesses engaged in regular import/export activities where the same parties conduct repeated transactions over time. The revolving nature of the credit means that once utilized, the credit limit automatically reinstates for future use without requiring a new letter of credit for each transaction. This template is drafted in accordance with New Zealand law and incorporates the UCP 600 international banking standards. It includes comprehensive provisions for credit limits, drawing mechanisms, document requirements, and bank undertakings, making it suitable for both simple and complex trade relationships. The document addresses key regulatory requirements under New Zealand's banking and commercial laws, including anti-money laundering provisions and financial market conduct regulations.
