Standby letter of credit (irrevocable)

Copyright © 2025 LexisNexis

Published by a LexisNexis Banking & Finance expert

Precedents

Standby letter of credit (irrevocable)

Copyright © 2025 LexisNexis

Published by a LexisNexis Banking & Finance expert

Precedents

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[TO BE PRINTED ON THE HEADED PAPER OF THE ISSUING BANK]

To:

[insert name and address of beneficiary]

Date: [insert date]

Dear [insert organisation name]

standby letter of credit number [insert number]

1. 1
  We hereby issue in your favour this irrevocable standby letter of credit (Standby Letter of Credit) by order of and for the account of [insert name of applicant] of [insert address of applicant] (the Principal debtor).
1. 2
  Our maximum aggregate liability to you under this Standby Letter of Credit shall not exceed [insert maximum aggregate liability and currency].
1. 3
  This Standby Letter of Credit expires at the close of banking hours at our offices on [insert expiry date] (the Expiry Date). We shall not be required to pay any claims made under this Standby Letter of Credit which are received by us after such time on the Expiry Date.
1. 4
  You

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Jurisdiction(s):

United Kingdom

Key definition:

Standby letter of credit definition

What does Standby letter of credit mean?

Used in some jurisdictions to describe an on demand performance bond.

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