Sample Acceptable Irrevocable Letter Of Credit Format (Page 2 of 2) in pdf

SAMPLE ACCEPTABLE IRREVOCABLE LETTER OF CREDIT FORMAT

(Note: LOC does not have to be in this exact format. Provided the LOC contains each of the following general

items, including automatic renewal and ability to make full and/or partial draws by fax or in person, the applicable

issuer’s “standard” form may be acceptable.

_____________________________________________________________________________________________

IN THE EVENT THIS LETTER OF CREDIT IS SUBSEQUENTLY AMENDED BY US TO EITHER:

I) RESCIND A NOTICE OF NON-EXTENSION AND TO EXTEND THE EXPIRY DATE HEREOF TO

A FUTURE DATE, OR

II) EXTEND THE EXPIRY DATE TO A DATE THAT IS AFTER THE STATED FINAL EXPIRY

DATE HEREOF,

SUCH EXTENSION SHALL BE FOR THAT SINGLE PERIOD ONLY AND THIS LETTER OF

CREDIT WILL NOT BE SUBJECT TO ANY FUTURE AUTOMATIC EXTENSIONS UNLESS

OTHERWISE STATED.

ADDITIONAL DETAILS:

RE: _______________(**1**)___________________

FUNDS UNDER THIS CREDIT ARE AVAILABLE AGAINST PRESENTATION OF THE

BENEFICIARY'S SIGNED AND DATED STATEMENT REFERENCING OUR LETTER OF CREDIT

NO. XXXX-XXXXXX, STATING THE AMOUNT OF THE DEMAND AND READING AS FOLLOWS:

"____________________________ (CUSTOMER) HAS FAILED TO MEET

ITS OBLIGATIONS UNDER THE TERMS OF _______________(**1**)________________.

THEREFORE CITY OF LONE TREE DEMANDS PAYMENT OF U.S. $____________ UNDER

__<NAME OF BANK>_______ STANDBY LETTER OF CREDIT NO. XXXX-XXXXXX."

DRAWINGS PRESENTED BY TELEFACSIMILE ("FAX") TO FAX NUMBER _________________, OR

ALTERNATELY TO FAX NUMBER __________________ ARE ACCEPTABLE, UNDER TELEPHONE PRE-

ADVICE TO __________________, PROVIDED THAT SUCH FAX PRESENTATION IS RECEIVED ON OR

BEFORE THE EXPIRY DATE ON THIS INSTRUMENT IN ACCORDANCE WITH THE TERMS AND

CONDITIONS OF THIS LETTER OF CREDIT, IT BEING UNDERSTOOD THAT ANY SUCH FAX

PRESENTATION SHALL BE CONSIDERED THE SOLE OPERATIVE INSTRUMENT OF DRAWING, NOT

CONTINGENT UPON PRESENTATION OF THE ORIGINAL LETTER OF CREDIT OR ORIGINAL

DOCUMENTS WITH RESPECT THERETO.

THIS LETTER OF CREDIT MAY BE CANCELLED PRIOR TO EXPIRATION PROVIDED THE

ORIGINAL LETTER OF CREDIT (AND AMENDMENTS, IF ANY) ARE RETURNED TO

__<NAME OF BANK>_______ WITH A STATEMENT SIGNED BY THE BENEFICIARY STATING THAT

THE ATTACHED LETTER OF CREDIT IS NO LONGER REQUIRED AND IS BEING RETURNED TO THE

ISSUING BANK FOR CANCELLATION.

WE ENGAGE WITH YOU THAT PRESENTATIONS MADE UNDER AND IN CONFORMITY WITH

THE TERMS AND CONDITIONS OF THIS CREDIT WILL BE DULY HONORED ON

PRESENTATION IF PRESENTED ON OR BEFORE THE EXPIRATION AT ____________________

_______________________________________. ALL PAYMENTS DUE

HERERUNDER SHALL BE MADE BY WIRE TRANSFER TO THE BENEFICIARY PER THEIR

INSTRUCTIONS. THE ORIGINAL LETTER OF CREDIT MUST ACCOMPANY THE DOCUMENTS

REQUIRED UNDER THIS CREDIT FOR ENDORSEMENT.

**1**

One of the following, as applicable



GESC PERMIT # _________________



Subdivision Improvements Agreement (SIA)



Site Improvements Plan Improvements Agreement (SIPIA)



Public Improvements Agreement (PIA)

Sample Acceptable Irrevocable Letter Of Credit Format Page 2

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