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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."
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
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
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
Banking and Financial Services
International Trade
Oil and Gas
Construction
Manufacturing
Infrastructure
Telecommunications
Energy
Maritime and Shipping
Real Estate
Mining
Legal
Finance
Treasury
Trade Finance
Risk Management
Compliance
Corporate Banking
International Business
Credit
Commercial Operations
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
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