This is a 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. 

How to use this Document? 

This document should be used by the Beneficiary to the Issuing Bank to certify that a certain sum is due under the letter of credit and therefore to demand payment of that sum under the SBLC. It should be used in the circumstance where the terms of the SBLC are fulfilled but the applicant has failed to pay or defaulted on the obligations. 

The 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.