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Irrevocable Lc Payment Terms for United Arab Emirates

Irrevocable Lc Payment Terms Template for United Arab Emirates

A comprehensive document governed by UAE law that establishes the payment terms and conditions for an irrevocable letter of credit, providing a secure payment mechanism in international trade transactions. The document details the obligations of all parties involved, specifies required documentation, payment conditions, and compliance requirements under UAE banking regulations and international standards (UCP 600). It includes specific provisions for document presentation, payment processing, and dispute resolution in accordance with UAE commercial law and banking practices.

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Irrevocable Lc Payment Terms

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What is a Irrevocable Lc Payment Terms?

The Irrevocable LC Payment Terms document serves as a crucial instrument in international trade finance under UAE jurisdiction. It is typically used when parties require a secure, bank-guaranteed payment method for cross-border transactions. The document outlines the specific conditions and requirements for the irrevocable letter of credit, ensuring compliance with UAE Federal Law No. 18 of 1993, UAE Central Bank regulations, and international UCP 600 standards. It provides certainty to sellers that payment will be made upon presentation of compliant documents, while giving buyers assurance that payment will only be released when specified conditions are met. This document is particularly important in the UAE context given its status as a major global trading hub and its specific regulatory requirements for banking and trade finance.

What sections should be included in a Irrevocable Lc Payment Terms?

1. LC Number and Date: Unique identification number of the LC and date of issuance

2. Parties: Details of all parties involved: Issuing Bank, Applicant (Buyer), Beneficiary (Seller), and Advising/Confirming Bank if applicable

3. Form of Credit: Specification that this is an irrevocable letter of credit and whether it is confirmed or unconfirmed

4. Currency and Amount: The currency and amount of the LC, both in figures and words

5. Availability and Expiry: How and where the credit is available (by sight, deferred payment, etc.) and expiry date

6. Shipment Terms: Latest shipment date, partial shipments, transshipment provisions

7. Required Documents: Detailed list of all required documents for presentation

8. Payment Terms: Specific conditions and timing of payment, including any negotiation or deferred payment terms

9. Presentation Period: Time period within which documents must be presented after shipment

10. Governing Law: Specification of UAE law as governing law and relevant ICC rules

What sections are optional to include in a Irrevocable Lc Payment Terms?

1. Transferability Clause: Include when the LC needs to be transferable to another beneficiary

2. Revolving Terms: Include for LCs that automatically renew under specified conditions

3. Red Clause: Include when advance payment provisions are required

4. Green Clause: Include when storage-related provisions are needed

5. Back-to-Back Provisions: Include when the LC is part of a back-to-back arrangement

6. Standby Provisions: Include when the LC serves as a standby instrument

7. Confirmation Instructions: Include when confirmation by another bank is required

8. Special Conditions: Include when there are additional requirements specific to the transaction

What schedules should be included in a Irrevocable Lc Payment Terms?

1. Schedule A - Document Requirements: Detailed specifications for each required document including format and content requirements

2. Schedule B - Technical Specifications: Detailed specifications of goods or services being purchased under the LC

3. Schedule C - Payment Schedule: Detailed breakdown of payment terms if involving multiple drawings or installments

4. Appendix 1 - Bank Details: Complete banking details for all parties involved

5. Appendix 2 - Standard Forms: Templates for required declarations or certificates

6. Appendix 3 - UCP 600 Excerpts: Relevant provisions from UCP 600 that specifically apply to this LC

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions














































Clauses






























Relevant Industries

Banking and Financial Services

International Trade

Import/Export

Manufacturing

Commodities Trading

Retail

Construction

Oil and Gas

Logistics and Transportation

Agricultural Trade

Wholesale Distribution

Mining and Minerals

Relevant Teams

Legal

Finance

Treasury

Trade Operations

Risk Management

Compliance

International Banking

Documentary Credits

Trade Finance

Banking Operations

Relevant Roles

Trade Finance Manager

Documentary Credits Specialist

International Banking Officer

Finance Director

Treasury Manager

Commercial Banking Manager

Trade Operations Manager

Credit Risk Officer

Compliance Officer

Legal Counsel

Chief Financial Officer

Import/Export Manager

Trade Finance Analyst

Banking Operations Manager

Documentary Collections Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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