Document background
A Release Letter of Credit is utilized when parties wish to terminate or modify their obligations under an existing Letter of Credit in Singapore. This document becomes necessary in various scenarios, such as when the underlying transaction has been completed through alternative means, when parties agree to cancel the LC, or when modifications to the original terms are required. The Release Letter of Credit must comply with Singapore banking regulations and international trade practices, particularly incorporating UCP 600 guidelines. It typically includes detailed information about the original LC, the parties involved, the scope of release, and any conditions that must be met for the release to take effect.
