Form Of Letter Of Credit - For Performance Security printable pdf download

Form Of Letter Of Credit - For Performance Security

FORM OF LETTER OF CREDIT – FOR PERFORMANCE SECURITY

[Issuing Bank Name & Address]

Date of Issue: [Date]

Irrevocable Standby Letter of Credit

No. [Number]

Applicant:

Beneficiary:

[Customer Name and Address]

British Columbia Hydro and Power Authority

[Address]

Amount:

[Currency and Amount both in letters and

numbers]

At the request of and for the account of the Applicant, we, [Bank Name], hereby establish in

favour of the Beneficiary our irrevocable standby Letter Of Credit No. [Number] (hereinafter

called the “Letter of Credit”) for an amount not exceeding [Currency and Amount both in letters

and numbers].

We, [Bank Name and Address], hereby unconditionally and irrevocably undertake and bind

ourselves, and our successors and assigns, to pay you immediately, the sum, which you claim

upon receipt of the following documents:

(1)

your written demand specifying the amount claimed, the number of this Letter of

Credit, and the date of issue of this Letter of Credit; and

(2)

this original Letter of Credit, including any amendments, must be presented with your

demand for payment for endorsement purposes.

This Letter of Credit may be presented for payment at the above issuing address or at [alternate

Vancouver (B.C) branch location if letter of credit is not issued in Vancouver].

It is understood that we are obligated under this Letter of Credit for the payment of monies only

and we hereby agree that we shall honour your demand for payment, on or before the expiry

date or any future expiry date, without enquiring whether you have a right as between yourself

and the Applicant to make such demand and without recognizing any claim of the Applicant.

Partial drawings and multiple presentations are allowed. The amount of this Letter of Credit

shall be automatically reduced by the amount of any drawing paid hereunder.

This Letter of Credit takes effect from the Date of Issue set forth above, and shall remain valid

until [Date]. However, it is a condition of this Letter of Credit that it will be automatically

extended without notice for a further one year period from the present or any future expiry

date unless at least ninety (90) days prior to such expiry date we notify you in writing by courier

Form Of Letter Of Credit - For Performance Security