Letter of Credit

Drawdown Notice with Presentation of Documents

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Description:

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.

 

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. 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. 

 

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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