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The Letter of Credit (LOC) is a crucial financial instrument in international trade, providing payment security and risk mitigation for cross-border transactions. Under Danish jurisdiction, this document combines local financial regulations with international banking practices, particularly the UCP 600 rules. It is typically used when parties seek a secure payment method in international trade, especially when dealing with new business relationships or high-value transactions. The LOC contains specific terms regarding payment conditions, required documentation, shipment details, and compliance requirements. It's particularly relevant in the Danish context where international trade forms a significant part of the economy, and banks must comply with both EU regulations and local financial laws.

1. Issuing Bank Details: Full name, address, and reference numbers of the issuing bank

2. Form of Credit: Specification that this is an irrevocable letter of credit and its number

3. Date of Issue: The date when the letter of credit is issued

4. Applicant Details: Full name and address of the party requesting the letter of credit

5. Beneficiary Details: Full name and address of the party in whose favor the LC is issued

6. Currency and Amount: The specified currency and amount of the letter of credit, both in figures and words

7. Available With: The name of the bank where the credit is available and type of availability (sight, deferred payment, etc.)

8. Expiry Date: The expiration date and place for presentation of documents

9. Required Documents: Detailed list of all required documents for presentation

10. Shipment Terms: Details of shipment including latest shipment date and partial shipments/transhipment conditions

11. Description of Goods: Detailed description of the goods or services covered by the LC

12. Special Conditions: Any special terms, conditions, or instructions applicable to the credit