Letter of Credit

Transferrable Documentary Credit

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Description:

This is a Documentary Letter of Credit to be issued by a Bank for a Beneficiary (Seller) on request by an Applicant (Buyer). It is a payment mechanism used in international trade to provide an economic guarantee for parties from a creditworthy bank. This is a transferrable documentary credit from the issuing bank to the Beneficiary.

A Documentary Letter of Credit is a payment mechanism used in international trade to provide an economic guarantee for parties from a creditworthy bank. The most common scenario for a 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. Such letters of credit require the Beneficiary to present a draft and specified documents in order to receive payment, hence the name "documentary credit". 

This Documentary Letter of Credit, in particular, is 'transferable', meaning that credit can be freely transferred to one or more secondary beneficiaries. In addition, it is irrevocable meaning that it cannot be cancelled or modified by the issuing bank. 

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 for Your Need?

1. Click the “Create Document” button and fill in the details of the parties. You can click the “Fill with Member’s Information” button to complete the party’s information with your personal or business information saved to your account.

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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Author:

DocPro Legal

DocPro Legal is a team of legal professionals with a passion for making quality documents and legal contract templates widely available to the public through cutting edge technology. Our lawyers are qualified in numerous common law jurisdictions including the United Kingdom, Australia, New Zealand, India, Singapore and Hong Kong. We have experience in major law firms and international banks with expertise in business, commercial, finance, banking, litigation, family, succession and company laws.