Stand By Letter Of Credit

Stand By Letter Of Credit Template for Qatar

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Key Requirements PROMPT example:

"I need a Standby Letter of Credit to secure a construction project performance guarantee for our Qatar infrastructure development, valued at USD 5 million, with Qatar National Bank as the issuing bank and expiring on March 15, 2025."

Document background

The Stand By Letter of Credit is a crucial financial instrument in Qatar's commercial landscape, commonly used to provide security for various business obligations. It serves as a bank's independent undertaking to pay the beneficiary upon documentary evidence of the applicant's non-performance or default of specified obligations. Subject to Qatar law and Qatar Central Bank regulations, these instruments typically incorporate international banking practices (ISP98 or UCP 600) while maintaining compliance with local requirements. SBLCs are particularly valuable in Qatar's growing economy, where they support various commercial transactions, construction projects, and international trade dealings by providing a reliable, bank-backed guarantee mechanism. The document includes specific drawing conditions, expiry terms, and documentary requirements, creating a secure framework for commercial parties to conduct business with confidence in the Qatar market.

Suggested Sections

1. Letter Reference Number: Unique identification number assigned by the issuing bank

2. Date of Issuance: The official date when the SBLC is issued

3. Issuing Bank Details: Complete name, address, and SWIFT code of the issuing bank

4. Beneficiary Details: Full name and address of the party in whose favor the SBLC is issued

5. Applicant Details: Full name and address of the party requesting the SBLC

6. Currency and Amount: The currency and maximum amount available under the SBLC

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

8. Form of Presentation: Specified format and location for presentation of documents

9. Drawing Terms: Conditions and required documents for drawing under the SBLC

10. Governing Law Statement: Clear statement that Qatar law governs the SBLC

11. Applicable Rules: Reference to ISP98 or UCP 600 as applicable

Optional Sections

1. Transferability Clause: Include when the SBLC needs to be transferable to another beneficiary

2. Partial Drawings: Include when multiple partial drawings are to be permitted

3. Automatic Extension Clause: Include when the SBLC should automatically extend beyond its initial expiry date

4. Multiple Beneficiary Provisions: Include when there are multiple beneficiaries

5. Counter Guarantee Requirements: Include when a counter guarantee from another bank is required

6. Assignment of Proceeds: Include when assignment of proceeds is to be permitted

Suggested Schedules

1. Schedule A - Form of Demand: Standard format for making a demand under the SBLC

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

3. Schedule C - Underlying Transaction Details: Description of the transaction or obligation being secured

4. Schedule D - Special Conditions: Any special conditions or requirements specific to this SBLC

5. Appendix 1 - Bank Authorization: Evidence of authority of bank signatories

6. Appendix 2 - Applicant Authorization: Evidence of authority of applicant to request the SBLC

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Banking & Financial Services

International Trade

Construction & Engineering

Oil & Gas

Manufacturing

Real Estate Development

Infrastructure

Telecommunications

Maritime & Shipping

Energy

Relevant Teams

Legal

Finance

Treasury

Trade Finance

Risk Management

Compliance

Corporate Banking

International Banking

Documentary Credits

Commercial Operations

Relevant Roles

Trade Finance Manager

Corporate Banking Officer

Chief Financial Officer

Treasury Manager

Finance Director

Commercial Director

Risk Management Officer

Documentary Credits Specialist

Compliance Officer

Legal Counsel

Contract Manager

Project Finance Manager

International Business Development Manager

Banking Operations Manager

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