Ƶ

Deferred Payment Letter Of Credit for Germany

Deferred Payment Letter Of Credit Template for Germany

A Deferred Payment Letter of Credit is a specialized banking instrument governed by German law and international banking practices (UCP 600), which provides a secure method of payment in international trade transactions. This document represents a bank's commitment to pay the beneficiary (seller) a specified amount at a predetermined future date, typically after the presentation of compliant documents, while allowing the applicant (buyer) to defer the actual payment. The instrument is structured under German banking regulations and provides detailed terms for document presentation, payment conditions, and the obligations of all involved parties.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Deferred Payment Letter Of Credit

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Deferred Payment Letter Of Credit?

The Deferred Payment Letter of Credit is essential in international trade financing where buyers require extended payment terms while ensuring sellers receive a secure payment commitment. This document is particularly relevant when conducting business under German jurisdiction, combining the security of a traditional letter of credit with deferred payment features. It is commonly used in large-scale commercial transactions where the buyer needs time to generate funds from the sale of goods or manage cash flow effectively. The document includes specific terms regarding payment timing, document presentation requirements, and bank obligations, all structured in compliance with German banking laws and UCP 600 guidelines. It serves as a critical tool for trade finance, offering protection to both parties while facilitating international commerce through structured payment arrangements.

What sections should be included in a Deferred Payment Letter Of Credit?

1. Issuing Bank Details: Complete name, address, and reference numbers of the issuing bank

2. Date and Place of Issue: When and where the Letter of Credit was issued

3. LC Number: Unique identification number of the Letter of Credit

4. Beneficiary Details: Complete name and address of the beneficiary (seller/exporter)

5. Applicant Details: Complete name and address of the applicant (buyer/importer)

6. Currency and Amount: Currency denomination and total amount of the Letter of Credit

7. Available With/By: Specification of nominated bank and manner of availability

8. Deferred Payment Terms: Specific terms of the deferred payment, including maturity date or calculation method

9. Expiry Date and Place: When and where the Letter of Credit expires

10. Shipment Terms: Latest shipment date and partial shipment/transhipment conditions

11. Required Documents: Detailed list of documents required for presentation

12. Additional Conditions: Any special conditions or requirements

13. Charges: Distribution of banking charges between parties

What sections are optional to include in a Deferred Payment Letter Of Credit?

1. Transferability Clause: Include when the Letter of Credit needs to be transferable to a second beneficiary

2. Revolving Terms: Include when the Letter of Credit is revolving rather than single-use

3. Back-to-Back Provisions: Include when the Letter of Credit may be used as collateral for another LC

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

5. Green Clause: Include when warehouse storage provisions are needed

6. Confirmation Instructions: Include when confirmation by another bank is requested

What schedules should be included in a Deferred Payment Letter Of Credit?

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

2. Goods Description Schedule: Detailed description of the goods, including specifications, quantities, and unit prices

3. Payment Schedule: Detailed breakdown of payment terms, including calculation methods and specific due dates

4. UCP 600 Exclusions: List of any UCP 600 articles that are expressly excluded or modified

5. Bank Instructions Appendix: Specific instructions for handling documents and payments by participating banks

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

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions








































Clauses




























Relevant Industries

Manufacturing

International Trade

Banking and Financial Services

Import/Export

Commodities Trading

Automotive

Electronics

Heavy Industry

Consumer Goods

Chemical Industry

Agriculture

Textiles

Mining and Resources

Construction Materials

Relevant Teams

Legal

Finance

Treasury

International Trade Operations

Risk Management

Procurement

Supply Chain

Documentary Credits

Trade Finance

Commercial Banking

Corporate Banking

Relevant Roles

Trade Finance Manager

International Business Development Manager

Chief Financial Officer

Treasury Manager

Import/Export Manager

Trade Operations Manager

Credit Manager

Banking Relationship Manager

Documentary Credits Specialist

International Trade Specialist

Finance Director

Supply Chain Manager

Procurement Manager

Corporate Banking Officer

Risk Management Officer

Commercial Banking Manager

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

Find the exact document you need

Loan Against Lc

A German law-governed agreement for providing financing against Letters of Credit, incorporating German banking regulations and international trade finance practices.

find out more

Letter Of Credit Risk

A German law-governed document analyzing and outlining risks associated with Letter of Credit transactions, incorporating both German banking regulations and international trade standards.

find out more

Letter Of Credit Fraud

A German law-governed document addressing Letter of Credit fraud, outlining allegations, evidence, and demands for remedial action under German legal framework.

find out more

Letter Of Credit Fee

A German law-governed document specifying the fee structure and payment terms for Letter of Credit services provided by a bank to its client.

find out more

Letter Of Credit Duration

A German law-governed document specifying the validity period and conditions of a letter of credit, incorporating both German banking regulations and international standards.

find out more

Letter Of Credit Amount

A German law-governed banking document specifying the amount and terms of a letter of credit facility for secure international trade payments.

find out more

Lc Finance Term

A German law-governed Letter of Credit financing agreement that establishes terms, conditions, and obligations for secure international trade transactions.

find out more

Letter Of Credit Payment Terms

German law-governed Letter of Credit payment terms document specifying conditions and requirements for L/C transactions.

find out more

Guarantee Letter Of Credit

A German law-governed banking instrument providing payment guarantee in international trade transactions, subject to document compliance and UCP 600 rules.

find out more

Credit Facility Offer Letter

A German law-governed formal offer letter from a bank detailing credit facility terms and conditions, compliant with German banking regulations.

find out more

Cash Collateralized Letter Of Credit

German law-governed agreement for a cash-collateralized letter of credit, establishing terms for secure payment backed by cash collateral.

find out more

Banker's Usance Lc

A German law-governed financial instrument providing deferred payment terms in international trade, issued by a bank to guarantee payment after a specified period.

find out more

Application For Letter Of Credit

A German-compliant application form for requesting a Letter of Credit from a bank, following German banking regulations and international trade practices.

find out more

Advance Payment Lc

A German law-governed banking instrument that secures advance payments in commercial transactions through documented conditions and bank guarantees.

find out more

Deferred Payment Letter Of Credit

A German law-governed banking instrument that commits to future payment in international trade transactions, combining the security of a letter of credit with deferred payment terms.

find out more

SBLC Buyers

A German law-governed agreement establishing terms for issuing a Standby Letter of Credit, detailing parties' obligations and drawing conditions.

find out more

SBLC Backed Buyers Credit

German law-governed credit facility agreement secured by a Standby Letter of Credit, structuring financing terms and security arrangements under German banking regulations.

find out more

SBLC At Sight

A German law-governed Standby Letter of Credit providing immediate payment guarantee upon presentation of compliant documents.

find out more

Payment Terms Dlc

German law-governed payment terms document for Documentary Letters of Credit, establishing conditions and requirements for secure international trade payments.

find out more

Negotiation Bank In Lc

A German law-governed agreement setting out terms for Letter of Credit negotiation services between a bank and its customer, compliant with German banking regulations and international standards.

find out more

Mixed Payment Lc

A German law-governed Letter of Credit combining immediate and deferred payment terms for international trade transactions, providing flexible payment structure with bank guarantee.

find out more

Irrevocable Non Transferable Letter Of Credit

A German law-governed financial instrument providing secure payment in international trade, issued by a bank as an irrevocable and non-transferable commitment to pay upon document compliance.

find out more

Direct Pay Standby Letter Of Credit

A German law-governed banking instrument providing payment security and primary payment mechanism through an irrevocable bank undertaking.

find out more

Credit Card Clearance Letter

A German-compliant formal document confirming the full settlement and closure of a credit card account, issued by the credit card provider to the cardholder.

find out more

Freely Negotiable Letter Of Credit

A German law-governed financial instrument issued by a bank guaranteeing payment in international trade transactions, subject to specified documentation requirements.

find out more

Verbiage Letter Of Credit

A German law-governed banking instrument that guarantees payment in international trade transactions upon presentation of compliant documents.

find out more

Small Business Letter Of Credit

A German-compliant Letter of Credit document providing payment security for small business international trade transactions, governed by German banking laws and UCP 600.

find out more

Secured Letter Of Credit

A German law-governed banking instrument combining a traditional letter of credit with security arrangements, providing enhanced protection while facilitating international trade transactions.

find out more

Loan Facility Letter

A German law-governed document establishing the terms and conditions of a loan facility between lender and borrower, compliant with German banking regulations and civil law requirements.

find out more

Line Of Credit Letter

A formal commitment letter under German law establishing a revolving credit facility's terms and conditions, in compliance with German banking regulations and civil code requirements.

find out more

Non Operative Letter Of Credit

A German law-governed banking instrument providing payment security in international trade through an irrevocable commitment from a bank to pay against compliant documents.

find out more

Letter Of Credit 90 Days

A German law-governed banking instrument guaranteeing payment to a seller after 90 days, subject to compliant document presentation, commonly used in international trade.

find out more

Letter Of Credit 60 Days

A German law-governed Letter of Credit providing 60-day deferred payment terms, ensuring secure international trade transactions under UCP 600 and German commercial law.

find out more

Letter Of Credit 30 Days

A German law-governed Letter of Credit providing for payment within 30 days, serving as a bank's irrevocable commitment to pay in international trade transactions.

find out more

Installment Letter Of Credit

A German law-governed banking instrument that facilitates scheduled installment payments in international trade transactions, providing security to both buyer and seller.

find out more

Inland Letter Of Credit

A German law-governed banking instrument providing payment security in domestic trade transactions through bank-mediated documentary credit.

find out more

Green Letter Of Credit

A German law-governed financial instrument combining traditional letter of credit security with environmental sustainability requirements for international trade transactions.

find out more

Import Documentary Letter Of Credit

A German law-governed banking instrument that guarantees payment in international trade upon presentation of compliant shipping documents.

find out more

Domestic Lc

A German law-governed domestic Letter of Credit facilitating secure payment in domestic trade transactions between German parties.

find out more

Digital Letter Of Credit

A German law-governed electronic banking instrument that guarantees payment in international trade transactions through secure digital platforms and authentication methods.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it