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TMI BlogLetter of Credit (LC) Sample format / Draft formatX X X X Extracts X X X X X X X X Extracts X X X X ..... Letter of Credit (LC) Sample format / Draft format X X X X Extracts X X X X X X X X Extracts X X X X ..... epted in international transactions. Letter of Credit (LC) Sample/Draft [Issuing Bank's Name] [Issuing Bank's Address] [City, Country] [Phone Number] [Email Address] [SWIFT/BIC Code] DATE: [Insert Date] LETTER OF CREDIT NO.: [LC Number] APPLICANT: [Buyer's Full Legal Name] [Buyer's Address] [City, Country] [Phone Number] BENEFICIARY: [Seller's Full Legal Name] [Seller' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Address] [City, Country] [Phone Number] 1. AMOUNT AND CURRENCY We, [Issuing Bank's Name], hereby issue this irrevocable letter of credit in favor of the Beneficiary for the amount of [Amount in words] (USD [Amount in figures]), or equivalent in [currency], subject to the terms and conditions stated herein. 2. EXPIRY DATE This Letter of Credit is valid until [expiry date], and all docum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents must be presented to us before the close of business on this date at our office located at [Issuing Bank's Address]. 3. PLACE OF PAYMENT Payment will be made at [Issuing Bank's Name, Branch Name, and Address] or any other bank authorized to make payment on our behalf under the terms of this credit. 4. DOCUMENTS REQUIRED The following documents are required for payment under this L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etter of Credit: * Commercial Invoice (original and 2 copies) showing a full description of the goods as per the purchase order. * Bill of Lading (original) signed by the carrier and consigned to [Buyer's Name] or order, indicating shipment of goods. * Packing List (original) detailing the items, packaging, and weight of the goods. * Certificate of Origin (original or notarized copy) issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the chamber of commerce or a recognized authority. * Insurance Certificate (original) covering the goods against [types of risks, e.g., marine risks] for the amount of [total value of goods] with the buyer as the beneficiary. * Inspection Certificate (original) issued by [Authorized Inspection Agency], certifying that the goods conform to the contractual specifications. * Any other docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments required as per the agreement or mentioned in the purchase contract. All documents must be in compliance with the terms and conditions of this Letter of Credit, and the documents must be presented to the negotiating bank within the validity period. 5. SHIPMENT DETAILS The goods must be shipped from [Port of Shipment] to [Port of Destination] within [Shipment Period] from the date of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Letter of Credit. 6. TRANSFERABILITY This Letter of Credit is [Non-Transferable / Transferable]. If transferable, it may be transferred in whole or in part to a third party at the beneficiary's request. 7. CONDITIONS OF PAYMENT Payment will be made upon presentation of the above-mentioned documents, which must strictly comply with the terms of this Letter of Credit. * Sight Payment: Paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent will be made upon the presentation of the documents and their verification. * Deferred Payment: Payment will be made [e.g., 30 days after sight or 60 days after shipment] upon presentation of the required documents. 8. DISCREPANCY In the event that the presented documents do not fully comply with the terms and conditions of this Letter of Credit, the Issuing Bank shall not be obligated to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make payment, and the buyer may request an amendment. Any discrepancies will be subject to the discretion of the Issuing Bank. 9. FORCE MAJEURE This Letter of Credit is subject to the provisions of Force Majeure and will not be enforced in the event of war, civil unrest, labor strikes, natural disasters, or any other event outside the control of the parties involved. 10. GOVERNING LAW AND JURIS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DICTION This Letter of Credit shall be governed by the laws of [Jurisdiction], and any disputes arising from this transaction shall be subject to the exclusive jurisdiction of the courts in [City, Country]. 11. ADDITIONAL CONDITIONS [Any additional terms, conditions, or clauses agreed upon between the parties can be mentioned here.] For and on behalf of [Issuing Bank's Name], Authorized S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignature [Name of Authorized Person] [Position/Title] [Bank's Seal or Stamp] Note: * This document is a draft and should be reviewed and customized according to the specifics of each transaction and agreement. * It is also important to note that all parties involved (buyer, seller, and banks) must ensure that the terms are clearly stated and agreed upon before finalizing the letter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit to avoid any misunderstandings or discrepancies.
This sample provides a general format and common terms used in international trade. Always consult with financial or legal professionals to ensure compliance with local regulations and international trade rules when drafting a Letter of Credit. X X X X Extracts X X X X X X X X Extracts X X X X
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