Letter of Credit

Drawdown Notice with Presentation of Documents

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Description:

This is a Drawdown Notice under a Documentary Letter of Credit 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 drawdown notice is usually sent with the presentation of shipping documents required under the Letter of Credit.

The Drawdown Notice refers to A Documentary Letter of Credit to be issued by a Bank for a Beneficiary (Seller) on request by an Applicant (Buyer). The Documentary Letter of Credit is a  payment mechanism used in international trade to provide an economic guarantee for parties from a creditworthy bank. All letters of credit require the Beneficiary to present a draft and specified documents in order to receive payment, hence the name "documentary credit". 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. The Drawdown Notice certifies that a specified sum is due under the Letter of Credit. 

How to use this Document? 

The document is addressed to the beneficiary by a Bank on request by an applicant. The letter clarifies that a certain sum is due under the Letter of Credit and asks that payment should be made to the account as specified by the Letter of Credit. 

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.

Information such as the sum due under the Letter of Credit, the relevant documents as set out in the Letter of Credit, the expiry date of the Letter of Credit and the Beneficiary's account number should be included. 

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.