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The Lc Revocable (Revocable Letter of Credit) is a financial instrument commonly used in U.S. trade finance, though less frequent than its irrevocable counterpart due to the lower security it offers to beneficiaries. It serves as a payment mechanism where a bank guarantees payment to a seller on behalf of a buyer, subject to the presentation of specified documents. However, its distinguishing feature is that it can be amended or canceled by the issuing bank without prior notification to or consent from the beneficiary. While this flexibility benefits the applicant and issuing bank, it's generally less preferred in modern international trade. The document is governed by U.S. banking regulations, particularly UCC Article 5, and often references international banking practices such as UCP 600. It's typically used in situations where there's high trust between parties or in specific domestic transactions where the risk of revocation is considered acceptable.

1. Letter of Credit Number: Unique identification number assigned to the LC

2. Date of Issuance: Date when the letter of credit is issued

3. Applicant Details: Full name and address of the party requesting the letter of credit

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

5. Issuing Bank Details: Name and address of the bank issuing the letter of credit

6. Credit Amount: The maximum amount available under the LC and currency denomination

7. Expiry Date: Date and place of expiry of the letter of credit

8. Document Requirements: List of documents required for presentation under the LC

9. Payment Terms: Conditions and timing of payment under the LC

10. Revocation Terms: Specific conditions under which the LC can be revoked or modified