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The Acceptance LC (Letter of Credit) is a crucial trade finance instrument used when parties require a bank-guaranteed deferred payment mechanism in international trade. This document type is particularly relevant in Saudi Arabia, where it must comply with both Sharia law and international banking standards. The Acceptance LC differs from a standard LC as it involves the bank accepting time drafts or bills of exchange, creating a negotiable instrument that can be discounted in the secondary market. The document includes specific terms for acceptance, payment at maturity, document requirements, and banking instructions. It's commonly used in transactions where the exporter wants the security of a bank's acceptance but is willing to wait for payment at maturity, while potentially having the option to discount the accepted draft for immediate financing. Under Saudi Arabian jurisdiction, these documents must conform to SAMA regulations, the Banking Control Law, and Islamic finance principles while maintaining international banking standards under UCP 600.

1. Bank Letter Head and Reference: Issuing bank's official letterhead, date, and unique LC reference number

2. Beneficiary Details: Complete name and address of the beneficiary of the LC

3. Applicant Details: Complete name and address of the applicant requesting the LC

4. Credit Amount and Currency: Specific amount and currency of the LC

5. Form of Credit: Specification that this is an Acceptance LC and its characteristics

6. Expiry Details: Expiry date and place of the LC

7. Draft Requirements: Specifications for the bill of exchange including tenor and drawee

8. Required Documents: List of all documents required for presentation

9. Shipment Terms: Details of shipment including latest shipment date and partial shipments status

10. Presentation Period: Time period within which documents must be presented

11. Authorization: Bank officer's signature and official stamp