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Irrevocable Standby Letter Of Credit
Note: The following forms and documents are prepared by the above under the laws and practice prevailing as of [Date]. Seldom is a model form or document directly suitable to a transaction without adaptation to the particularities and circumstances of the matter.
Address of Bank:
Payment Guarantee No.
We have been informed that on [Date], you have concluded an agreement with [Name], regarding three supply contracts in relation to [Describe].
The agreement stipulates that [Name] has to arrange issuance of an irrevocable letter of guarantee in your favor to secure payment obligations which are due as follows:
Amount to be paid
Date of payment
This being premised, we, [Bank], hereby irrevocably guarantee to pay you without delay on your first written demand any amount up to [$------] provided you confirm to us at the same time in writing (genuineness of the signature of the representative of your company to be duly verified by an important bank in your country) that has not fulfilled any payment obligations when due and therefore that all remaining payments are now due.
This guarantee shall be automatically reduced by the amount of any payment received by you from us upon our execution of the order(s) given to us by in connection with the above mentioned agreement between [Name] and [Name].
However, this guarantee shall expire, even if this document is not returned, on at the latest, unless your written demand under this guarantee in accordance with the above mentioned conditions has reached us in by the end of that day.
This guarantee is assignable only with our consent.
This letter of guarantee is subject to the Uniform Customs and Practise for Documentary Credits, Publication 500 of the International Chamber of Commerce.