Document background
The Letter of Credit Promissory Note serves as a crucial financial instrument in Singapore's banking and trade landscape. This document is typically used when parties require both the payment security of a letter of credit and the transferable nature of a promissory note. It's particularly valuable in international trade transactions where the beneficiary needs documented payment assurance that can be potentially negotiated or discounted. Under Singapore law, this instrument must comply with the Bills of Exchange Act and Banking Act, while typically following UCP 600 guidelines for international standardization. The document combines the creditworthiness of the issuing bank with the maker's direct payment obligation.
