The Discrepancy Letter of Credit is essential in international trade finance when documents presented under a Letter of Credit contain discrepancies that could otherwise result in payment rejection. Operating within Malaysia's robust financial services framework, this document is typically used when minor documentary inconsistencies are discovered during the bank's document examination process. It provides a formal mechanism for the beneficiary to acknowledge these discrepancies while requesting the bank to proceed with payment processing. The document must comply with both Malaysian banking regulations and international banking practices (UCP 600), making it particularly important in Malaysia's trade-focused economy where Letters of Credit are commonly used in cross-border transactions. It includes specific indemnification clauses protecting the banks involved and must be properly authorized by the beneficiary's representatives.
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.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Letter Header: Company letterhead, date, reference numbers, and addressee details
2. LC Reference: Clear identification of the Letter of Credit number, date, and issuing bank
3. Transaction Details: Details of the underlying transaction including amount, shipment details, and document presentation date
4. Discrepancy List: Detailed enumeration of all discrepancies found in the documents
5. Acknowledgment: Formal acknowledgment of the discrepancies listed
6. Payment Request: Formal request for the bank to process the payment despite the discrepancies
7. Indemnification: Statement indemnifying the bank against any claims arising from paying against discrepant documents
8. Signature Block: Authorized signature, name, title, and company stamp
1. Waiver of Protest: Additional waiver of right to protest if payment is refused - used when dealing with particularly significant discrepancies
2. Amendment Request: Request for LC amendment if applicable - used when discrepancies could be resolved through an amendment
3. Previous Communication Reference: Reference to any prior communications regarding the discrepancies - used when there have been previous discussions
4. Time Extension Request: Request for extension of time for document presentation - used when documents are being presented near expiry date
1. Copy of Letter of Credit: Complete copy of the original LC and any amendments
2. List of Presented Documents: Detailed list of all documents presented under the LC
3. Bank's Discrepancy Notice: Copy of the bank's formal notice listing the discrepancies found
4. Supporting Correspondence: Copies of any relevant prior correspondence regarding the discrepancies
5. Authorization Evidence: Evidence of signatory's authority to sign the discrepancy letter on behalf of the beneficiary
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
International Trade
Manufacturing
Agriculture and Food
Oil and Gas
Electronics and Semiconductors
Textile and Apparel
Commodities Trading
Logistics and Shipping
Import/Export
Wholesale Distribution
Relevant Teams
Trade Finance
International Banking
Documentary Credits
Export Operations
Import Operations
Treasury
Compliance
Legal
Finance
International Operations
Risk Management
Documentary Collections
Relevant Roles
Trade Finance Manager
Export Manager
Import Manager
Documentary Credit Specialist
International Trade Specialist
Banking Operations Manager
Letter of Credit Officer
Compliance Officer
Trade Documentation Officer
Finance Director
Treasury Manager
Banking Relationship Manager
Trade Finance Analyst
Chief Financial Officer
International Business Development Manager
Find the exact document you need
Credit Note Letter To Customer
A Malaysian-compliant business document that formally acknowledges a reduction in a customer's payment obligation to a company, typically issued to correct billing errors or process returns.
find out more
Letter Of Credit Rates
A Malaysian banking document outlining the fee structure and commission rates for Letter of Credit services, governed by Malaysian financial regulations and banking laws.
find out more
Credit Limit Approval Letter To Customer
A Malaysian-compliant formal letter from a financial institution approving and establishing terms for a customer's credit facility.
find out more
Credit Application Request Letter
A formal letter requesting credit facilities from a Malaysian financial institution, complying with local banking regulations and requirements.
find out more
Letter Of Credit Limit
A Malaysian law-governed banking facility document establishing terms for issuing Letters of Credit up to an approved limit.
find out more
SBLC As Collateral
Malaysian law-governed agreement establishing terms for using a Standby Letter of Credit as collateral security, incorporating local banking regulations and international practices.
find out more
Lc Invoice
A specialized commercial invoice document used in Letter of Credit transactions under Malaysian law, combining standard invoice elements with specific LC requirements for international trade.
find out more
Cash Letter Credit
A Malaysian-law governed banking instrument representing an irrevocable payment commitment from a bank to a beneficiary, subject to document compliance.
find out more
Marginal Deposit On Letter Of Credit
A Malaysian law-governed agreement establishing terms for a marginal deposit as security for a Letter of Credit facility, complying with local banking regulations and facilitating international trade financing.
find out more
Lc Agreement
A Malaysian law-governed agreement establishing terms and conditions for Letter of Credit issuance and management, complying with local banking regulations and international standards.
find out more
Lc Export Import
A Malaysian-compliant Letter of Credit document that facilitates secure international trade payments, governed by local banking laws and UCP 600.
find out more
SBLC For Buyers Credit
A Malaysian law-governed bank guarantee instrument supporting buyer's credit facilities in commercial transactions, providing payment security to creditors.
find out more
Letter Of Credit Collection
A Malaysian-compliant banking instruction document for international trade payment collection through Letter of Credit, governed by local financial regulations and international banking standards.
find out more
180 Days Usance Lc
A Malaysian law-governed Letter of Credit providing 180-day deferred payment terms for international trade transactions, combining local regulatory requirements with international banking practices.
find out more
Letter Of Credit Risk
A Malaysian jurisdiction risk assessment and management framework for Letter of Credit transactions, covering both conventional and Islamic banking requirements.
find out more
Letter Of Credit Fraud
A Malaysian law-governed document addressing letter of credit fraud in international trade, incorporating local banking regulations and international banking practices.
find out more
Letter Of Credit Amount
A Malaysian banking document specifying the amount and terms of a letter of credit, governed by Bank Negara Malaysia regulations and international UCP 600 guidelines.
find out more
Credit Facility Offer Letter
A Malaysian-compliant formal letter from a financial institution offering credit facilities to a borrower, detailing key terms and conditions under Malaysian banking regulations.
find out more
Cash Collateralized Letter Of Credit
Malaysian law-governed agreement for a cash-backed letter of credit facility, establishing terms between bank, applicant, and beneficiary.
find out more
SBLC At Sight
A Malaysian-law governed Standby Letter of Credit that provides immediate payment guarantee upon presentation of compliant documents.
find out more
Usance Lc Discounting
Malaysian law-governed agreement for discounting of Usance Letters of Credit between financial institutions and beneficiaries.
find out more
Revolving SBLC
A Malaysian law-governed revolving standby letter of credit agreement establishing terms for an automatically renewable financial guarantee facility.
find out more
Payment Terms Dlc
Malaysian-law governed payment terms document for Documentary Letter of Credit transactions, establishing secure international trade payment conditions.
find out more
Non Transferable SBLC
A Malaysian law-governed Non-Transferable Standby Letter of Credit that provides payment guarantee to a specific beneficiary, with explicit prohibition on transfer or assignment.
find out more
Non Operative SBLC
A Malaysian-law governed standby letter of credit serving as a bank guarantee for payment or performance obligations, subject to Malaysian banking regulations.
find out more
Negotiable Lc
A Malaysian law-governed banking instrument that provides payment security in international trade through a negotiable letter of credit structure.
find out more
Mixed Payment Lc
A Malaysian-compliant financial instrument that combines multiple payment methods in a Letter of Credit for international trade transactions.
find out more
Irrevocable Non Transferable Letter Of Credit
A Malaysian law-governed banking instrument that provides an irrevocable and non-transferable payment guarantee in international trade, subject to document compliance.
find out more
Direct Pay Standby Letter Of Credit
A Malaysian law-governed standby letter of credit providing payment security through an irrevocable bank undertaking, subject to document compliance.
find out more
Credit Card Clearance Letter
A Malaysian banking document confirming complete settlement and closure of a credit card account, issued by the card-issuing bank.
find out more
Freely Negotiable Letter Of Credit
A Malaysian-governed banking instrument that provides payment assurance in international trade, allowing negotiation at any bank worldwide.
find out more
Transferable Lc At Sight
A Malaysian-compliant financial instrument allowing transfer of letter of credit rights to second beneficiaries with payment at sight, governed by UCP 600 and local banking regulations.
find out more
Straight Letter Of Credit
A Malaysian law-governed banking instrument providing direct, irrevocable payment commitment in international trade transactions.
find out more
Small Business Letter Of Credit
A Malaysian-law governed Letter of Credit document tailored for small business transactions, providing payment security in international trade.
find out more
Secured Letter Of Credit
A Malaysian law-governed financial instrument combining a traditional letter of credit with security arrangements, providing enhanced protection for the issuing bank through collateral requirements.
find out more
Red Letter Of Credit
A Malaysian-governed banking instrument that provides payment security in international trade transactions, subject to Malaysian banking regulations and UCP 600.
find out more
Loan Facility Letter
A Malaysian law-governed document issued by financial institutions outlining approved loan facility terms and conditions, compliant with local banking regulations and Financial Services Act 2013.
find out more
Non Operative Letter Of Credit
A Malaysian law-governed banking instrument that provides conditional payment guarantee in international trade, pending activation upon fulfillment of specified conditions.
find out more
Letter Of Credit 90 Days
A Malaysian law-governed trade finance instrument providing 90-day deferred payment terms with bank-guaranteed security for international trade transactions.
find out more
Letter Of Credit 60 Days
A Malaysian-law governed Letter of Credit providing 60-day deferred payment terms for international trade transactions, regulated under local banking laws and UCP 600.
find out more
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
.png)