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Blockchain Letter Of Credit
"Need a Blockchain Letter of Credit to facilitate the import of electronic components from Taiwan, with a credit amount of USD 500,000, using the Ethereum platform for smart contract execution, and requiring specific provisions for partial shipments by March 2025."
1. Parties: Identification of all parties involved: Applicant, Issuing Bank, Beneficiary, and any Nominated Banks
2. Background: Context of the underlying transaction and purpose of the Letter of Credit
3. Definitions: Key terms including blockchain-specific terminology and technical definitions
4. Credit Amount and Currency: Specification of the credit amount, currency, and any tolerance levels
5. Smart Contract Terms: Technical specifications of the blockchain implementation and execution conditions
6. Document Requirements: Required digital documents and verification procedures
1. Transferability Clause: Additional provisions for when the LC needs to be transferable to other beneficiaries. Used when dealing with intermediaries or multiple suppliers
2. Back-to-Back Arrangements: Provisions for back-to-back LC arrangements, typically used when involving middlemen or trading houses
3. Force Majeure for Technical Issues: Specific provisions for blockchain network failures or technical issues, included when specific technical risks need to be addressed
1. Technical Schedule: Detailed technical specifications of the blockchain platform and smart contract
2. Document Checklist: List of required digital documents and their verification parameters
3. Fee Schedule: Breakdown of all fees including blockchain transaction fees
4. Security Protocol: Details of digital security measures and access controls
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