Standby Letter of Credit

Demand / Drawdown Letter

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Description:

Demand for payment under Standby Letter of Credit issued by an Issuer for a Beneficiary. This is a demand letter from the beneficiary to the issuing Bank demanding for payment under the SBLC, which is similar to a guarantee. This letter is usually sent when the terms of the original SBLC are fulfilled and the applicant has failed to pay / default on its obligation. 

 

The most common scenario for the Standby Letter of Credit to be issued is where two parties enter into an agreement or a deal, and they do not know each other’s credibility well enough.

 

How to use this Document?

 

This document should be carefully read by the Issuing Bank and the Beneficiary.

 

Both the Bank and Beneficiary should sign and return a copy, and once signed, both parties should get a copy. To avoid any future disputes, both parties may wish to have their signatures witnessed.

 

If either party wishes to amend the agreement in the future, both parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by both parties.

 

How to Tailor the Document to Your Need

  1. Click “Create Document” button and the document will be prepared with with your account details automatically filled in.

  2. Please fill in any additional information by following the step-by-step guide on the left hand side of the preview document and click the “Next” button.

  3. When you are done, click the “Get Document” button and you can download the document in Word or PDF format.

  4. Please review the document carefully and make any final modifications to ensure that the details are correct before sending to the addressee.

Document Type:

Letter / e-mail / note / correspondence

Category:

Business > Banking and Finance > Standby Letter of Credit / Trade Finance

 
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