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The Documentary Letter of Credit is a fundamental instrument in international trade finance, providing security and payment assurance to parties involved in cross-border transactions. Operating within New Zealand's legal framework and complying with international banking practices (UCP 600), it serves as a bank's commitment to pay against the presentation of specified documents. This document is typically used when parties seek to minimize trading risks, particularly when dealing with new business relationships or in countries with different legal systems. It details the conditions for payment, document requirements, and timeframes, while incorporating both New Zealand's commercial law requirements and international banking standards. The instrument is especially valuable in complex international transactions where direct payment methods may be deemed too risky.

1. Issuing Bank Details: Complete details of the bank issuing the Letter of Credit, including name, address, and SWIFT code

2. Letter of Credit Number: Unique reference number assigned to the LC

3. Date of Issue: The date when the Letter of Credit is issued

4. Applicant Details: Complete name and address of the party requesting the Letter of Credit (typically the buyer)

5. Beneficiary Details: Complete name and address of the party in whose favor the LC is issued (typically the seller)

6. Currency and Amount: The currency and maximum amount for which the LC is issued

7. Type of Credit: Specification of whether the credit is irrevocable, confirmed, transferable, etc.

8. Expiry Date and Place: The date and location where the credit expires

9. Available With/By: Specifies the bank with which the credit is available and the manner of availability

10. Partial Shipments/Transhipment: Whether partial shipments or transhipment is allowed or prohibited

11. Port of Loading/Discharge: Specified ports for loading and discharge of goods

12. Latest Date of Shipment: Final date by which shipment must be made

13. Description of Goods: Detailed description of the goods being traded

14. Documentary Requirements: List of all required documents that must be presented for payment

15. Payment Terms: Specific conditions and timing of payment

16. Bank Charges: Allocation of banking charges between parties