Document background
The Structured Letter of Credit is a sophisticated banking instrument used in complex commercial transactions where standard letters of credit may not provide sufficient flexibility or security. This document type is particularly relevant for transactions requiring specific structuring of payment terms, multiple drawing conditions, or special arrangements for document presentation and examination. Under Canadian jurisdiction, these instruments must comply with the federal Bank Act, provincial commercial laws, and international banking standards including UCP 600. The Structured Letter of Credit incorporates additional layers of security and specific conditions that can address various contingencies in international trade and domestic commercial transactions. It is commonly used in high-value transactions, project financing, or when dealing with complex delivery and payment schedules. The document provides detailed terms for document examination, payment conditions, and any special arrangements while ensuring compliance with Canadian anti-money laundering regulations and international banking practices.
