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Standby Letter Of Credit Template for Nigeria

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Key Requirements PROMPT example:

Standby Letter Of Credit

"I need a Standby Letter of Credit for a Nigerian oil and gas project, issued by First Bank of Nigeria for NGN 500 million, expiring March 15, 2025, with monthly partial drawings allowed and automatic extension provisions."

Document background
The Standby Letter of Credit (SLOC) is a fundamental financial instrument in Nigerian banking and commerce, designed to provide payment security in various business transactions. It is particularly useful when parties seek a reliable payment guarantee mechanism that complies with both Nigerian banking regulations and international standards. The document is typically used in situations where one party requires financial assurance from another, such as in large commercial contracts, international trade, or project financing. Under Nigerian law, SLOCs must comply with the Banks and Other Financial Institutions Act (BOFIA) 2020, Central Bank of Nigeria regulations, and often incorporate international practices like ISP98 and UCP 600. The document specifies the conditions for drawing on the credit, required documentation, expiry dates, and other crucial terms that protect all parties' interests while ensuring regulatory compliance.
Suggested Sections

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

2. Date and Place of Issuance: Specific date and location where the SLOC is issued

3. SLOC Reference Number: Unique identification number assigned to the standby letter of credit

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

5. Applicant Details: Full name and address of the party requesting the SLOC

6. Amount and Currency: Maximum amount available under the SLOC and specified currency

7. Expiry Date: Clear statement of when the SLOC expires

8. Drawing Terms: Specific conditions and requirements that must be met for drawing under the SLOC

9. Required Documents: List of documents that must be presented with any drawing request

10. Governing Law: Statement that the SLOC is governed by Nigerian law and applicable international rules

11. Presentation Location: Where and how documents must be presented for drawing

Optional Sections

1. Transferability Clause: Include when the SLOC needs to be transferable to other beneficiaries

2. Partial Drawings: Include when multiple partial drawings are to be permitted

3. Automatic Extension Clause: Include when the SLOC should automatically extend beyond its initial expiry date unless notice is given

4. Special Payment Conditions: Include when specific payment timing or methods are required

5. Amendment Provisions: Include when specific procedures for amendments need to be detailed

6. Force Majeure Clause: Include when specific force majeure provisions need to be addressed

7. Assignment of Proceeds: Include when the beneficiary needs the right to assign proceeds to third parties

Suggested Schedules

1. Drawing Request Form: Standard form to be used when making a drawing under the SLOC

2. Specimen Signatures: Authorized signatures for the issuing bank and/or applicant

3. Form of Demand: Template for the beneficiary to make a formal demand under the SLOC

4. Required Certifications: Templates for any specific certifications required for drawing

5. Document Presentation Checklist: List of required documents and presentation requirements

6. Transfer Application Form: Form to be used if the SLOC is transferable

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 and Financial Services

International Trade

Oil and Gas

Construction

Manufacturing

Infrastructure

Telecommunications

Energy

Maritime and Shipping

Real Estate

Mining

Relevant Teams

Legal

Finance

Treasury

Trade Finance

Risk Management

Compliance

Corporate Banking

International Business

Credit

Commercial Operations

Relevant Roles

Trade Finance Manager

Corporate Banking Officer

Risk Management Officer

Treasury Manager

Chief Financial Officer

Commercial Director

Trade Operations Manager

Compliance Officer

Legal Counsel

Credit Risk Manager

International Business Manager

Project Finance Manager

Documentary Credits Specialist

Banking Relationship Manager

Finance Director

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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