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SBLC Transferable for Philippines

SBLC Transferable Template for Philippines

This document represents a Standby Letter of Credit (SBLC) issued under Philippine law that includes specific provisions for transferability. It serves as a bank's irrevocable undertaking to pay the beneficiary upon presentation of complying documents, with the unique feature that the initial beneficiary can transfer their rights to another party. The document incorporates Philippine banking regulations, particularly those under the General Banking Law of 2000 and relevant BSP circulars, while also adhering to international banking practices such as ISP98 or UCP 600. It includes detailed transfer mechanisms, drawing conditions, and compliance requirements specific to the Philippine jurisdiction.

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What is a SBLC Transferable?

The Transferable SBLC is a specialized banking instrument used in commercial transactions where the initial beneficiary may need to transfer their rights to a third party. This document is particularly relevant in scenarios involving multiple parties in a supply chain, large-scale projects, or international trade transactions. The Transferable SBLC, governed by Philippine law, provides security for commercial obligations while offering flexibility through its transfer mechanism. It includes essential elements such as the bank's payment undertaking, transfer conditions, document requirements, and compliance with both Philippine banking regulations and international standby practices. This instrument is commonly used in situations where the initial beneficiary acts as a middleman or when project financing requires the ability to transfer credit rights.

What sections should be included in a SBLC Transferable?

1. Parties: Identification of all parties: Issuing Bank, Applicant, Initial Beneficiary

2. Background: Context of the SBLC issuance, underlying transaction details, and purpose

3. Definitions: Key terms used in the SBLC including technical banking terms and transfer-related terminology

4. SBLC Amount and Currency: Specification of the credit amount and currency of payment

5. Validity Period: Effective date and expiry date of the SBLC

6. Transfer Terms and Conditions: Detailed conditions and procedures for transferring the SBLC to another beneficiary

7. Drawing Conditions: Specific conditions and required documents for drawing under the SBLC

8. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction details

9. Bank's Undertaking: Bank's irrevocable commitment to honor complying presentations

10. Notices: Communication procedures and contact details for all parties

What sections are optional to include in a SBLC Transferable?

1. Multiple Transfers Provision: Include when multiple transfers of the SBLC are to be permitted

2. Partial Transfers: Include when the SBLC can be transferred in parts to multiple beneficiaries

3. Electronic Presentation: Include when electronic presentation of documents is acceptable

4. Transfer Fees and Charges: Include when specific arrangements for transfer fees need to be detailed

5. Anti-Money Laundering Compliance: Include when enhanced AML provisions are required

6. Force Majeure: Include when specific force majeure provisions are needed beyond standard banking practice

What schedules should be included in a SBLC Transferable?

1. Schedule A - Required Documents for Transfer: List of documents required to effect transfer of the SBLC

2. Schedule B - Drawing Documents: Detailed list of documents required for drawing under the SBLC

3. Schedule C - Transfer Application Form: Standard form to be used when requesting transfer of the SBLC

4. Schedule D - Fee Schedule: Detailed breakdown of all applicable fees and charges

5. Appendix 1 - Specimen Signatures: Authorized signatures of relevant parties

6. Appendix 2 - Form of Transfer Notice: Standard format for notifying the bank of intended transfer

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions





































Clauses






























Relevant Industries

Banking and Financial Services

International Trade

Import/Export

Construction

Manufacturing

Energy

Infrastructure

Commodities Trading

Real Estate Development

Maritime and Shipping

Relevant Teams

Legal

Trade Finance

International Banking

Compliance

Risk Management

Treasury

Documentary Credits

Corporate Banking

Operations

Credit Administration

Relevant Roles

Trade Finance Manager

International Banking Officer

Credit Risk Officer

Documentary Credits Specialist

Compliance Officer

Treasury Manager

Chief Financial Officer

International Trade Specialist

Banking Operations Manager

Legal Counsel

Commercial Banking Relationship Manager

Project Finance Manager

Import/Export Manager

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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