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Irrevocable Standby Letter Of Credit Template for Philippines

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Key Requirements PROMPT example:

Irrevocable Standby Letter Of Credit

"I need an Irrevocable Standby Letter of Credit to secure a construction project in Manila worth USD 5 million, with quarterly drawing options and an expiry date of December 31, 2025, including an auto-extension clause for an additional year."

Document background
The Irrevocable Standby Letter of Credit is a fundamental banking instrument used in the Philippines and international commerce to provide payment security in various commercial transactions. It represents an irrevocable undertaking by a bank to pay a specified sum to a beneficiary when certain conditions are met, typically the presentation of compliant documents. This document type is governed by Philippine law, specifically the General Banking Law of 2000 and BSP regulations, while also following international banking practices (UCP 600 and ISP98). It's particularly useful in scenarios where a party needs to demonstrate financial capability or provide payment security, such as in international trade, construction projects, or large procurement contracts. The irrevocable nature means it cannot be modified or cancelled without the agreement of all parties involved.
Suggested Sections

1. Letter Reference Number: Unique identifier for the SBLC issued by the bank

2. Date of Issuance: The official date when the SBLC becomes effective

3. Issuing Bank Details: Complete name, address, and SWIFT code of the issuing bank

4. Beneficiary Details: Full name and address of the party in whose favor the SBLC is issued

5. Applicant Details: Full name and address of the party requesting the SBLC

6. Credit Amount: The maximum amount available under the SBLC, including currency denomination

7. Expiry Date: The date and place where the SBLC expires

8. Drawing Terms: Specific conditions and required documents for drawing under the SBLC

9. Form of Presentation: Requirements for how drawing documents must be presented

10. Governing Law and Jurisdiction: Specification of Philippine law and relevant international rules (UCP 600/ISP98)

11. Bank Authorization: Official bank signatures and authorization stamps

Optional Sections

1. Advising Bank Details: Required when a second bank is involved in advising the SBLC to the beneficiary

2. Transferability Clause: Include when the SBLC needs to be transferable to another beneficiary

3. Partial Drawings: Include when multiple partial drawings are to be allowed

4. Auto-Extension Clause: Include when the SBLC should automatically extend beyond its initial expiry date

5. Multiple Currency Option: Include when drawings can be made in different currencies

6. Force Majeure Clause: Optional protection against extraordinary events affecting bank operations

Suggested Schedules

1. Schedule A - Required Documents: Detailed list of documents required for drawing under the SBLC

2. Schedule B - Drawing Certificate Format: Prescribed format for the beneficiary's drawing certificate

3. Schedule C - Fee Schedule: Breakdown of all applicable banking fees and charges

4. Appendix 1 - Authorized Signatories: List of authorized signatories for the applicant and/or beneficiary

5. Appendix 2 - Communication Procedures: Detailed procedures for communications between parties

Authors

Alex Denne

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

Relevant legal definitions
Clauses






























Relevant Industries

Banking and Financial Services

International Trade

Construction

Manufacturing

Energy

Infrastructure

Real Estate

Telecommunications

Mining

Oil and Gas

Retail

Wholesale Distribution

Relevant Teams

Treasury

Finance

International Trade

Procurement

Legal

Risk Management

Compliance

Commercial Operations

Credit Control

Trade Operations

Relevant Roles

Chief Financial Officer

Treasury Manager

Trade Finance Manager

Financial Controller

Import/Export Manager

Procurement Manager

Credit Manager

Risk Manager

Banking Relationship Manager

Commercial Director

Finance Director

International Trade Specialist

Documentary Credits Specialist

Compliance Officer

Legal Counsel

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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