Bank Standby Letter Of Credit Template for Canada

The Bank Standby Letter of Credit is a fundamental instrument in commercial transactions where payment or performance assurance is required. It is commonly used in Canadian and international trade to provide security for various business obligations, including contract performance, tender participation, and payment guarantees. The document is issued by a bank at the request of its client (the applicant) in favor of a third party (the beneficiary). It must comply with Canadian federal banking regulations, particularly the Bank Act, while typically also adhering to international banking standards such as UCP 600 or ISP98. The instrument provides a robust form of security as it represents an independent obligation of the issuing bank, separate from the underlying commercial transaction. The document specifies key elements including credit amount, validity period, drawing conditions, and required documentation for claims.

1. Letter Reference and Date: Unique SBLC reference number and issuance date

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

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

4. Issuing Bank Details: Name, address, and SWIFT code of the issuing bank

5. Credit Amount: Specific amount and currency of the SBLC

6. Expiry Details: Expiry date and place of the SBLC

7. Drawing Terms: Specific conditions and requirements for drawing under the SBLC

8. Governing Rules: Reference to UCP 600 or ISP98 rules governing the SBLC

9. Governing Law: Specification of Canadian law as governing law

10. Form of Demand: Required format and content of any demand under the SBLC