IRREVOCABLE STANDBY LETTER OF CREDIT
Applicant (Buyer): (Name of company, Address, Phone, Contact Person)
Beneficiary (Seller): (Name of company, Address, Phone, Contact Person)
BY THE ORDER OF: BUYER
We hereby establish our irrevocable Standby Letter of Credit number ######### in favor of [NAME OF BENEFICIARY] (The Beneficiary) for the account of buyer (The Applicant) for an amount of USD ____________ (Write in Words and Numerals) available by your drafts at sight and payable at sight when accompanied by the following documents:
Beneficiary’s signed certificate stating:
I, an authorized representative of [NAME OF BENEFICIARY] with respect to (Name of issuing bank) letter of credit number _____________hereby certify that:
- Applicant is in default under the agreement(s) between the Applicant and Beneficiary and the amount of this drawing USD _________________ is due and owing and remains unpaid under said agreement(s).
This Letter of Credit is effective as of (DATE) and shall expire on (DATE) but such expiration date shall be automatically extended for a period of at least one (1) year on (DATE) and on each successive expiration date, unless, at least 90 days before the current expiration date, bank notify Applicant by certified mail or overnight courier that it has decided not to extend this letter of credit beyond the current expiration date. In the event you are so notified any unused portion of the credit shall be available upon presentation of your sight draft for 90 days after the date of receipt by the (Applicant) as shown on the signed return receipts.
Whenever this Letter of Credit is drawn on under and in compliance with the terms of this Credit, we shall duly honor each draft upon presentation to us, and we shall deposit the amount of the draft directly in accordance with your instructions.
This credit is subject to the most recent versions of the Uniform Customs and Practice for Documentary credits (2007 Revisions) International Chamber of Commerce Publication No. 600, or later such revision as shall come into effect.
Lender Signature ____________________________ DATE_______________
Printed name of Signatory: ________________________
Bank Contact Information: (Bank address, contact person and telephone #)
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