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Standby Letter of Credit

Demand / Drawdown Letter

Demand / Drawdown Letter 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 usually sent when the terms of the original SBLC are fulfilled and the applicant has failed to pay / default on its obligation. 

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Document Description

The Standby Letter of Credit is a document that serves as a guarantee of payment to the beneficiary in case the applicant fails to fulfill their obligations. This document is of utmost importance in international trade and finance as it provides security and assurance to both parties involved.


The entire document consists of a quote addressed to the bank, a demand for the standby letter of credit, and a closing statement. The quote includes the recipient's name, the date, and a salutation. The demand section certifies the amount due under the letter of credit and requests payment to a specific account. It also states that the demand should be made before the expiry date of the letter of credit. The closing statement expresses gratitude for the bank's attention and conveys the sender's expectation for a prompt resolution.


Each section of the document serves a specific purpose. The quote establishes the context and identifies the intended recipient. The demand section clearly states the amount due and provides instructions for payment. The closing statement expresses the sender's confidence in the resolution of the matter.


Overall, the Standby Letter of Credit is a crucial document in international trade, providing assurance to both parties involved and ensuring the smooth execution of financial transactions.

How to use this document?

1. Address the document to the bank: Begin by addressing the document to the bank, clearly stating their name.

2. State the purpose of the document: Clearly state that the document is a demand for a standby letter of credit.

3. Certify the amount due: Certify the specific amount that is due under the letter of credit.

4. Provide payment instructions: Clearly state the account to which the payment should be made.

5. Set a deadline for the demand: Ensure that the demand is made before the expiry date of the letter of credit.

6. Express gratitude and expectation: Conclude the document by expressing gratitude for the bank's attention and conveying the expectation for a prompt resolution.


Note: It is important to ensure that all information provided in the document is accurate and up-to-date. Additionally, it is recommended to seek legal advice or consult relevant guidelines to ensure compliance with applicable laws and regulations.

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