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Bank Guarantee Letter Of Credit
"I need a Bank Guarantee Letter of Credit for a machinery import transaction from Germany to Saudi Arabia, valued at EUR 2.5 million, with payment in three installments and requiring Shariah compliance certification."
1. Letter Reference Number and Date: Unique identifier for the LC and issuance date
2. Bank Details: Full details of the issuing bank including address and SWIFT code
3. Applicant Details: Complete information about the party requesting the LC
4. Beneficiary Details: Complete information about the party in whose favor the LC is issued
5. Credit Amount and Currency: Specific amount and currency of the LC
6. Type of Credit: Specification of whether irrevocable, confirmed, transferable, etc.
7. Expiry Date and Place: Clear statement of when and where the LC expires
8. Payment Terms: Specific conditions and timing of payment
9. Required Documents: Detailed list of documents required for presentation
10. Goods/Services Description: Detailed description of the underlying transaction
11. Shipment Terms: If applicable, shipping details including latest shipment date
12. Governing Law Statement: Reference to Saudi law and Shariah compliance
13. Authentication: Bank's authorized signatures and authentication details
1. Confirmation Instructions: Include when confirmation from another bank is required
2. Transferability Clause: Include when the LC needs to be transferable to another beneficiary
3. Revolving Credit Terms: Include for LCs that automatically renew under specified conditions
4. Red Clause: Include when advance payment to beneficiary is permitted
5. Green Clause: Include when storage of goods is involved with advance payment
6. Partial Shipment/Drawing Terms: Include when partial shipments or drawings are allowed
7. Tolerance Clause: Include when quantity/amount variations are acceptable
1. Schedule A - Document Requirements: Detailed checklist of required documents and their specifications
2. Schedule B - Payment Schedule: If applicable, breakdown of payment terms and installments
3. Schedule C - Goods Specification: Detailed technical specifications of goods/services covered
4. Appendix 1 - SAMA Compliance Declaration: Standard declaration confirming compliance with SAMA regulations
5. Appendix 2 - Shariah Compliance Certificate: Confirmation of compliance with Islamic banking principles
6. Appendix 3 - Bank's Standard Terms: Standard terms and conditions of the issuing bank for LCs
Authors
Banking and Financial Services
International Trade
Manufacturing
Oil and Gas
Construction
Retail
Agriculture
Mining
Telecommunications
Pharmaceuticals
Automotive
Energy
Textiles
Technology
Industrial Equipment
Legal
Finance
Treasury
International Trade
Risk Management
Compliance
Corporate Banking
Trade Finance
Documentary Credits
Banking Operations
Trade Finance Manager
International Banking Officer
Compliance Officer
Shariah Compliance Manager
Documentary Credits Specialist
Import/Export Manager
Treasury Manager
Risk Management Officer
Corporate Banking Manager
Chief Financial Officer
Finance Director
International Trade Specialist
Banking Operations Manager
Legal Counsel
Credit Risk Officer
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