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Advance Letter Of Credit Template for Ireland

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Key Requirements PROMPT example:

Advance Letter Of Credit

"I need an Advance Letter of Credit for an Irish technology company importing manufacturing equipment from Japan, with a value of €2.5 million and requiring 30% advance payment, to be issued by March 2025."

Document background
An Advance Letter of Credit is a crucial financial instrument in international trade, particularly when advance or prepayment terms are required by the seller. This document, governed by Irish law and regulated under the Central Bank Act 1942 (as amended), provides security to both parties in cross-border transactions. The Advance Letter of Credit differs from standard LCs by allowing for payment before the actual shipment or service delivery, thus offering enhanced security to sellers while providing buyers with a structured financing mechanism. It incorporates specific provisions for advance payments while adhering to international banking standards (UCP 600) and Irish financial regulations. This instrument is particularly valuable in high-value transactions or when dealing with new trading partners where trust needs to be established.
Suggested Sections

1. Bank Details and Reference: Opening section identifying the issuing bank, branch, and unique LC reference number

2. Date and Place of Issue: Clear statement of when and where the Letter of Credit was issued

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

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

5. Currency and Amount: Specification of the credit amount and currency, both in figures and words

6. Type and Form of Credit: Specification that this is an advance/prepayment LC and whether it's irrevocable

7. Expiry Details: Clear statement of expiry date and place

8. Available With/By: Specification of how and where the credit is available (payment, acceptance, negotiation)

9. Partial Shipments/Transhipment: Whether these are allowed or prohibited

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

11. Additional Conditions: Any specific conditions or terms that must be met

12. Charges: Specification of which party bears which bank charges

13. Presentation Period: Time period within which documents must be presented

14. Confirmation Instructions: Whether the LC should be confirmed by another bank

Optional Sections

1. Transfer Conditions: Include when the LC needs to be transferable to another beneficiary

2. Back-to-Back Provisions: Include when the LC is part of a back-to-back arrangement

3. Revolving Terms: Include when the LC is revolving rather than single-use

4. Special Payment Terms: Include when there are specific payment arrangements like red clause or green clause provisions

5. Standby Provisions: Include when the LC functions as a standby credit

6. Assignment of Proceeds: Include when proceeds can be assigned to a third party

7. Reimbursement Instructions: Include when specific reimbursement arrangements between banks are required

Suggested Schedules

1. Schedule A - Commercial Invoice Requirements: Detailed specifications for the format and content of commercial invoices

2. Schedule B - Transport Document Requirements: Specific requirements for bills of lading or other transport documents

3. Schedule C - Insurance Document Requirements: Detailed requirements for insurance certificates or policies

4. Schedule D - Additional Document Requirements: Specifications for any other required documents

5. Appendix 1 - Standard Banking Forms: Standard forms required by the issuing bank

6. Appendix 2 - Fee Schedule: Detailed breakdown of all applicable banking fees and charges

7. Appendix 3 - Specimen Signatures: Authorized signatures for the LC operation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses

























Relevant Industries

Banking & Financial Services

International Trade

Import/Export

Manufacturing

Commodities Trading

Shipping & Logistics

Retail

Wholesale

Agriculture

Energy

Construction

Mining

Textiles

Electronics

Relevant Teams

Trade Finance

International Banking

Treasury

Credit Risk

Legal

Compliance

Finance

Procurement

Supply Chain

Operations

Documentary Credits

Global Trade

Banking Relations

Relevant Roles

Trade Finance Manager

International Banking Officer

Finance Director

Treasury Manager

Import/Export Manager

Trade Operations Manager

Credit Risk Officer

Documentary Credits Specialist

Compliance Officer

Chief Financial Officer

Banking Relationship Manager

Supply Chain Manager

Procurement Manager

Global Trade Director

Financial Controller

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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