Performance Standby Letter Of Credit Template for Hong Kong

The Performance Standby Letter of Credit is a crucial financial instrument in international trade and commercial transactions, particularly relevant under Hong Kong's sophisticated banking system. This document is typically used when one party requires security for the performance obligations of another party in a underlying commercial contract. The Performance Standby Letter of Credit provides an independent, bank-backed guarantee that can be called upon through presentation of specified documents indicating a performance default. Used extensively in cross-border transactions, it offers the beneficiary the security of a bank's payment obligation, independent of disputes in the underlying contract. The document must comply with Hong Kong banking regulations and commonly incorporates international banking practices, making it a reliable instrument in international trade and commercial relationships. It's particularly valuable in situations where parties seek a secure, internationally recognized form of performance security that benefits from Hong Kong's well-established legal framework and banking infrastructure.

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

2. Date of Issuance: Clear statement of the date when the SBLC is issued

3. SBLC Number: Unique identification number of the Standby Letter of Credit

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

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

6. Currency and Amount: The maximum amount available under the SBLC and the currency

7. Expiry Details: Date and place of expiry of the SBLC

8. Form of Demand: Specific requirements for making a demand under the SBLC

9. Performance Obligations: Clear description of the underlying performance obligations being guaranteed

10. Drawing Terms: Conditions and documentation required for drawing under the SBLC

11. Governing Law: Statement that the SBLC is governed by Hong Kong law

12. Applicable Rules: Reference to ICC URDG 758 or other applicable rules