tiktok³ÉÈË°æ

The Performance Standby Letter of Credit is primarily used in commercial transactions where parties seek a reliable mechanism to secure performance obligations. This document type is particularly relevant when one party (the beneficiary) requires security against potential non-performance by another party (the applicant) in substantial commercial contracts. Under Dutch law jurisdiction, the instrument combines local legal requirements with international banking practices, making it especially suitable for cross-border transactions involving Dutch entities. The Performance Standby Letter of Credit typically includes detailed provisions regarding the conditions for payment, required documentation, expiry terms, and specific performance obligations being guaranteed. It serves as an independent obligation of the issuing bank, separate from the underlying commercial contract, providing a swift and reliable payment mechanism upon documented default.

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 SBLC is issued

3. SBLC Reference Number: Unique identification number assigned to the SBLC

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

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

6. Currency and Amount: Maximum amount available under the SBLC and currency denomination

7. Underlying Transaction Reference: Reference to the main contract or agreement this SBLC supports

8. Performance Obligations: Clear description of the performance obligations being guaranteed

9. Demand Requirements: Specific conditions and documentation required for making a demand under the SBLC

10. Expiry Terms: Expiry date and conditions, including place where demand must be presented

11. Governing Law and Jurisdiction: Specification of Dutch law as governing law and relevant jurisdiction

12. ISP98 Reference: Statement incorporating ISP98 rules