Document background
The Irrevocable Standby Letter of Credit is a crucial financial instrument used in various commercial transactions under Irish law. It serves as a contingent payment guarantee, typically issued by a bank at the request of their client (the applicant) in favor of a beneficiary. This document is particularly valuable in situations where parties seek additional security for contractual obligations, such as performance guarantees, bid bonds, or financial obligations. The irrevocable nature means it cannot be modified or cancelled without the agreement of all parties involved. The document must comply with Irish banking regulations, including the Central Bank Act and relevant EU regulations, while typically incorporating international banking practices such as ISP98 or UCP 600. It contains specific details about the parties involved, the guaranteed amount, expiry date, drawing conditions, and required documentation for payment claims.
