Standby Letter of Credit

IRREVOCABLE STANDBY LETTER OF CREDIT

Before you use this: Obtain the issuing bank's authorized issuance. Select a single rule set, clear documentary draw conditions, the place and method of presentation, an exact expiry, and any extension option. An applicant cannot issue this instrument for a bank. An advising bank is not a confirming bank unless it separately adds a confirmation.

Issuing bank: [EXACT LEGAL NAME / ADDRESS / AUTHENTICATED BANK CODE] ("Issuer")

Credit number: [NUMBER]

Issue date: [__/__/____]

Applicant: [EXACT LEGAL NAME / ADDRESS]

Beneficiary: [EXACT LEGAL NAME / ADDRESS]

Advising bank, if any: [BANK / AUTHENTICATED ROUTE OR NONE]

1. Irrevocable undertaking and amount

At Applicant's request, Issuer issues this irrevocable standby letter of credit in favor of Beneficiary. Issuer undertakes to honor a presentation complying with the express terms of this credit and the selected rules, subject to applicable law, for aggregate drawings not exceeding [CURRENCY / AMOUNT IN FIGURES] ([AMOUNT IN WORDS]).

This credit supports [SPECIFIC PAYMENT OR PERFORMANCE DUTY] under [UNDERLYING AGREEMENT / DATE] solely for identification. The documents required for a draw are stated in Section 2. Issuer does not decide the underlying merits as a routine condition of a documentary presentation.

Availability: ☐ sight payment ☐ payment on [EXACT DEFERRED-PAYMENT DATE FORMULA]. Partial drawings are ☐ permitted ☐ prohibited. Multiple drawings are ☐ permitted ☐ prohibited. Amount available is reduced by amounts Issuer honors and by an express scheduled reduction, if any, in Schedule A.

2. Documents required for a drawing

Beneficiary shall present each of the following selected documents:

1. A signed and dated demand substantially in the form of Exhibit A, stating the credit number, amount requested, and the exact factual certification selected here: [FULL REQUIRED STATEMENT]. The required signer's capacity is [TITLE OR AUTHORIZED REPRESENTATIVE].
2. ☐ An original or copy of this credit, as specified: [DETAILS] ☐ No copy of the credit required.
3. ☐ A sight draft drawn on [BANK], in [FORM] ☐ No separate draft required.
4. ☐ Other specifically described document: [ISSUER / TITLE / CONTENT / NUMBER / DATE / SIGNATURE] ☐ No other document.

A checked document with an incomplete content field must be completed before issuance. No document outside this list is required for a drawing. A beneficiary must not certify a default or nonrenewal unless the actual facts and this credit's completed terms support that statement.

3. Presentation and expiry

Present the documents to [BANK / DEPARTMENT / PHYSICAL ADDRESS OR AUTHENTICATED ELECTRONIC DESTINATION] by ☐ physical delivery ☐ authenticated electronic presentation using [PORTAL / FORMAT / RULE VERSION]. This is the place of presentation, not merely a correspondence address.

Expiration: [__/__/____] at [TIME] [TIME ZONE] at the presentation place. A presentation must be received by the specified channel before expiry, subject to the selected rules and any express business-day term here: [TERM OR NONE].

Examination, honor, and refusal: [SELECTED RULES / EXPRESS PERIOD AND NOTICE METHOD]. Issuer shall give any notice of refusal through [METHOD / ADDRESS] stating the discrepancies required by the selected procedure. Beneficiary may correct and re-present before expiry where permitted.

4. Optional extension or reduction

The parties choose ☐ no automatic extension ☐ the following automatic extension:

Unless Issuer sends a nonextension notice to Beneficiary at [NOTICE ADDRESS] by [METHOD] at least [NUMBER] days before the then-current expiry date, the expiry date extends by [PERIOD] to [CALCULATION METHOD], subject to the final outside date [__/__/____]. Issuer shall keep proof of delivery. This clause applies only if the extension option is selected and completed.

Nonextension draw: ☐ No separate draw right arises from a nonextension notice. ☐ Beneficiary may draw on a timely nonextension notice by presenting the Section 2 demand with this additional, factually accurate statement: [EXACT STATEMENT], within [PERIOD] and before expiry. Select one option.

Scheduled amount reduction, if any: [AMOUNT / EFFECTIVE DATE / CONDITION OR NONE]. No decrease occurs merely because the underlying obligation has changed unless this credit expressly says so or is amended through the selected process.

5. Transfer, charges, and amendments

This credit is ☐ transferable under [EXACT RULE / ISSUER PROCEDURE] ☐ not transferable. A transfer is effective only through the issuer's required authenticated action. Beneficiary may request an assignment of proceeds separately; that request does not itself transfer the credit.

Issuer, advising, confirmation, draw, and transfer charges: [FEE TYPE / AMOUNT OR METHOD / PARTY RESPONSIBLE]. No fee is imposed by an unfilled category.

An amendment must be authenticated by Issuer and become effective under the selected rules and any affected confirming-bank undertaking. The amendment shall identify any change to amount, beneficiary, expiry, documentary conditions, or transferability; a prior credit term remains in effect until the amendment is effective.

6. Selected rules and law

This standby expressly incorporates ☐ ISP98, ICC Publication 590 ☐ UCP 600, ICC Publication 600 ☐ other rules [EXACT TITLE / VERSION] ☐ no private rule set. Select one primary rule set. Matters not resolved by this credit or the selected rules are governed by [STATE OR COUNTRY] law, to the extent that law applies. Nothing here is an applicant reimbursement agreement, fraud adjudication, or waiver of a nonwaivable remedy.

7. Issuance and bank authentication

This standby becomes Issuer's undertaking only upon its authorized, authenticated issuance below. Issuer's aggregate obligation is limited to the amount then available under this credit. Any confirmation by another bank requires that bank's separate authenticated undertaking in Section 8.

Issuer: [EXACT LEGAL NAME]

Authorized signature or authenticated issuance reference: [SIGNATURE / CHANNEL / REFERENCE]

Name and title: [NAME / TITLE]

Issue date and time: [DATE / TIME / TIME ZONE]

8. Optional advising and confirmation

Advising bank acknowledgment, if any: [BANK NAME] advises this credit using [AUTHENTICATION RECORD] and adds no separate payment undertaking merely by advising it.

Confirming bank's separate undertaking, only if actually added: [BANK NAME] confirms Credit No. [NUMBER] up to [AMOUNT] until [EXPIRY] under [SELECTED RULES / CONDITIONS].

Confirming-bank authorized signature or authenticated reference: [SIGNATURE / CHANNEL / REFERENCE / DATE]

Exhibit A — Beneficiary demand

To: [ISSUER / PRESENTATION ADDRESS OR CHANNEL]

Date: [__/__/____]

Credit number: [NUMBER]

Beneficiary: [EXACT NAME]

Amount demanded: [CURRENCY / AMOUNT]

The undersigned Beneficiary demands payment under the identified standby credit and certifies the following statement exactly as required by Section 2: [COPY FINAL SECTION 2 CERTIFICATION VERBATIM AND COMPLETE ITS FACTUAL FIELDS].

If the selected nonextension-draw option applies, the additional certification is: [EXACT SECTION 4 STATEMENT OR NOT APPLICABLE].

The amount demanded together with prior honored drawings does not exceed the remaining available amount shown in the Issuer's record: [CALCULATION / DATE]. The selected supporting documents are enclosed or presented through the authenticated channel: [LIST].

Beneficiary: [LEGAL NAME]

By: [SIGNATURE]

Name and title: [NAME / TITLE]

Date and time of presentation: [DATE / TIME / ZONE]