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Standby Letter Of Credit Template for Singapore

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Key Requirements PROMPT example:

Standby Letter Of Credit

"Need a Standby Letter of Credit to secure a construction project in Singapore for SGD 5 million, with quarterly renewal options until March 2025, and including provisions for partial drawings."

Document background
The Standby Letter of Credit is widely used in Singapore and international commerce as a risk mitigation tool. It serves as a contingent obligation where the issuing bank commits to pay the beneficiary upon presentation of specified documents indicating a default or non-performance by the applicant. The document follows strict formatting and content requirements under Singapore law and international banking practices, particularly UCP 600 and ISP98. It typically includes detailed information about payment conditions, expiry dates, and documentary requirements, making it a crucial instrument for securing commercial obligations.
Suggested Sections

1. Issuing Bank Details: Full legal name, address, and reference numbers of the issuing bank

2. Beneficiary Details: Complete identification of the party in whose favor the SBLC is issued

3. Amount and Currency: Specific amount and currency of the SBLC

4. Expiry Date: Clear statement of when the SBLC expires

5. Drawing Conditions: Specific conditions under which the SBLC can be drawn

6. Governing Law and Jurisdiction: Specification of Singapore law as governing law and jurisdiction for disputes

Optional Sections

1. Transferability Clause: Optional clause specifying whether and how the SBLC can be transferred to another beneficiary

2. Partial Drawings: Optional clause allowing for multiple partial drawings under the SBLC

3. Auto-renewal Clause: Optional clause specifying terms for automatic renewal of the SBLC

4. Assignment Provisions: Optional clause detailing whether proceeds can be assigned to third parties

Suggested Schedules

1. Form of Demand: Standard template for making a compliant demand under the SBLC

2. Required Supporting Documents: Comprehensive list of documents required to be presented with any demand

3. Fee Schedule: Detailed breakdown of all applicable banking charges and fees

4. Communication Methods: Approved methods and formats for communications relating to the SBLC

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



























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Industries

UCP 600: Uniform Customs and Practice for Documentary Credits - Primary international rules governing letters of credit, including standby letters of credit

ISP98: International Standby Practices - Specific rules governing standby letters of credit operations internationally

Banking Act (Chapter 19): Singapore's primary banking legislation governing banking operations and regulatory requirements for banks issuing SBLCs

Monetary Authority of Singapore Act (Chapter 186): Legislation establishing MAS's regulatory authority over banking institutions and financial instruments including SBLCs

MAS Notice 643: Regulatory notice concerning transactions with related parties, affecting SBLC issuance to related entities

MAS Notice 637: Guidelines on risk-based capital adequacy requirements affecting banks' SBLC operations

Banking (Credit Card and Charge Card) Regulations: Regulations affecting banking operations and credit facilities including SBLC issuance

Contract Law (Chapter 2): Singapore contract law principles governing the formation and enforcement of SBLCs as contractual instruments

Electronic Transactions Act (Chapter 88): Laws governing electronic documentation and digital signatures in financial transactions including SBLCs

Bills of Exchange Act (Chapter 23): Legislation governing negotiable instruments which may be relevant to SBLC operations

Companies Act (Chapter 50): Corporate law requirements affecting company authority and capacity to enter into SBLC arrangements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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