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Installment Letter Of Credit
"I need an Installment Letter of Credit for importing manufacturing equipment from Japan, with quarterly payments over 18 months starting March 2025, total value USD 2.5 million, with specific requirements for performance testing documentation before each installment release."
1. Letter Date and Reference: Date of issuance and unique reference number for the Letter of Credit
2. Applicant Details: Full name and address of the party requesting the Letter of Credit (buyer/importer)
3. Beneficiary Details: Full name and address of the party in whose favor the Letter of Credit is issued (seller/exporter)
4. Issuing Bank Details: Name and address of the bank issuing the Letter of Credit
5. Credit Amount and Currency: Total value of the Letter of Credit and currency of payment
6. Installment Structure: Clear breakdown of installment amounts, dates, and conditions for each payment
7. Availability and Expiry: How and where the credit is available, and final expiry date
8. Required Documents: List of documents required for each installment payment
9. Shipment Terms: Details of shipment including latest shipment date and partial shipments if applicable
10. Special Conditions: Any specific conditions or requirements for the Letter of Credit
1. Advising Bank Details: Include when a separate advising bank is involved in the transaction
2. Transferability Clause: Include if the Letter of Credit needs to be transferable to another beneficiary
3. Revolving Credit Terms: Include if the Letter of Credit has revolving features
4. Back-to-Back Provisions: Include if this is part of a back-to-back Letter of Credit arrangement
5. Confirmation Instructions: Include if confirmation by another bank is required
6. Green Clause: Include if advance payments are permitted before document presentation
7. Force Majeure Provisions: Include specific force majeure terms if required beyond standard UCP provisions
1. Payment Schedule: Detailed schedule showing each installment amount, trigger events, and due dates
2. Document Checklist: Comprehensive list of required documents for each installment with specific requirements
3. Shipping Schedule: Timeline of expected shipments corresponding to installment payments
4. Product Specifications: Detailed specifications of goods or services being purchased
5. Bank Forms: Standard forms required by the issuing bank for document presentation
6. INCOTERMS Appendix: Detailed explanation of applicable INCOTERMS if referenced in the main letter
Authors
Banking and Financial Services
International Trade
Manufacturing
Construction
Infrastructure
Energy
Mining
Agriculture
Retail
Technology
Telecommunications
Heavy Industry
Shipping and Logistics
Import/Export
Legal
Finance
Treasury
International Trade
Procurement
Risk Management
Compliance
Commercial Banking
Trade Operations
Documentary Credits
Supply Chain
Corporate Banking
Trade Finance Manager
International Business Director
Chief Financial Officer
Treasury Manager
Import/Export Manager
Procurement Director
Financial Controller
Trade Operations Manager
Commercial Banking Officer
Documentary Credits Specialist
International Sales Manager
Supply Chain Manager
Corporate Banking Manager
Risk Management Officer
Legal Counsel
Compliance Officer
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