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Bond Letter Of Credit
"I need a Bond Letter of Credit for PHP 50 million to be issued by ABC Bank Manila in favor of the Department of Public Works and Highways, valid until March 15, 2025, to secure our company's performance guarantee for the Metro Manila Bridge Construction Project."
1. Bank Details and Reference Number: Issuing bank's details and unique LC reference number
2. Date and Place of Issue: When and where the Letter of Credit was issued
3. Applicant Details: Full legal name and address of the party requesting the Bond Letter of Credit
4. Beneficiary Details: Full legal name and address of the party in whose favor the Bond Letter of Credit is issued
5. Amount and Currency: The maximum amount and currency of the Letter of Credit
6. Expiry Date and Place: When and where the Letter of Credit expires
7. Bond Reference: Details of the underlying bond or guarantee this LC is supporting
8. Terms and Conditions: Specific conditions under which the Letter of Credit can be drawn
9. Draw Down Procedures: Detailed process for making claims under the Letter of Credit
10. Required Documents: List of documents that must be presented for any claim
11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction
1. Transferability Clause: Section specifying if and how the Letter of Credit can be transferred to another beneficiary
2. Partial Drawings: Section allowing or prohibiting partial drawings under the Letter of Credit
3. Special Conditions: Any additional conditions or requirements specific to this Bond Letter of Credit
4. Counter-Guarantee Provisions: Terms of any counter-guarantee arrangements if applicable
5. Amendment Procedures: Process for making amendments to the Letter of Credit
6. Force Majeure Clause: Provisions dealing with unforeseen circumstances or events beyond parties' control
7. Anti-Money Laundering Compliance: Specific provisions relating to AML compliance requirements
1. Schedule A - Draw Down Form: Standard form to be used when making a claim under the Letter of Credit
2. Schedule B - Bank Documentation Requirements: Detailed list of bank's requirements for processing claims
3. Schedule C - Specimen Signatures: Authorized signatures for the applicant and beneficiary
4. Schedule D - Bond Terms: Copy or summary of the underlying bond terms
5. Appendix 1 - Fee Schedule: Details of all applicable bank fees and charges
6. Appendix 2 - Communication Procedures: Procedures for official communications between parties
7. Appendix 3 - Compliance Documents: Required regulatory compliance documents under Philippine law
Authors
Banking and Financial Services
Construction and Infrastructure
International Trade
Manufacturing
Energy and Utilities
Real Estate Development
Government and Public Sector
Mining and Resources
Telecommunications
Transportation and Logistics
Legal
Finance
Treasury
Compliance
Risk Management
Procurement
Project Management
Corporate Banking
Trade Finance
Credit Administration
Chief Financial Officer
Treasury Manager
Finance Director
Bank Relationship Manager
Trade Finance Manager
Credit Risk Officer
Compliance Officer
Legal Counsel
Project Manager
Procurement Manager
Contract Administrator
Business Development Director
Financial Controller
Corporate Banking Officer
Risk Management Officer
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