Standby letter of credit (irrevocable)

The following Banking & Finance precedent provides comprehensive and up to date legal information covering:

  • Standby letter of credit (irrevocable)

Standby letter of credit (irrevocable)

[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 may request a drawing under this Standby Letter of Credit by giving us a duly completed demand for payment (a Demand) substantially in the form of the appendix to this Standby Letter of Credit on or before the Expiry Date.

    1. 5

      Each Demand given to us under this Standby Letter of Credit must be presented to us at [insert address of issuing bank] for the attention of [insert name of officer, name of department] in legible form. You may deliver a Demand to us by letter

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