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Sblc Trade (Finance)
"I need an SBLC Trade (Finance) document under Indian law for a USD 5 million manufacturing equipment purchase, where ABC Manufacturing (Mumbai) is the applicant and XYZ Equipment Co. (Germany) is the beneficiary, with validity until March 2025."
1. Parties: Identifies all parties involved: Issuing Bank, Beneficiary, Applicant, and any Advising/Confirming Banks
2. Background: Context of the SBLC issuance, underlying transaction details, and purpose of the standby letter of credit
3. Definitions: Defines key terms used throughout the document including banking terms, financial definitions, and technical terminology
4. Credit Amount and Currency: Specifies the maximum amount of the SBLC and the currency of payment
5. Validity Period: States the effective date and expiry date of the SBLC
6. Drawing Conditions: Detailed conditions under which the beneficiary can draw on the SBLC, including required documentation
7. Payment Terms: Specifies payment mechanics, timing, and process for honoring drawings
8. Bank's Obligations: Details the obligations and responsibilities of the issuing bank
9. Representations and Warranties: Standard representations and warranties from all parties
10. Events of Default: Circumstances that constitute default and consequences thereof
11. Governing Law and Jurisdiction: Specifies Indian law as governing law and jurisdiction for disputes
12. Notices: Communication protocols and contact details for all parties
13. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability
1. Confirmation Requirements: Include when a confirming bank is required to add its confirmation to the SBLC
2. Transfer Rights: Include when the SBLC needs to be transferable to other beneficiaries
3. Counter Indemnity: Include when specific indemnification from the applicant to the issuing bank is required
4. Foreign Exchange Provisions: Include for cross-border transactions requiring specific forex handling
5. Security Arrangements: Include when collateral or security is required from the applicant
6. Force Majeure: Include when specific force majeure provisions beyond standard terms are required
7. Anti-Money Laundering Compliance: Include when enhanced AML provisions are required for high-risk transactions
1. Schedule 1 - Form of Demand: Standard format for making drawings under the SBLC
2. Schedule 2 - Required Documents: List and format of all documents required for drawing under the SBLC
3. Schedule 3 - Fee Schedule: Details of all applicable fees, charges, and commission
4. Schedule 4 - Contact Details: Complete contact information for all parties
5. Schedule 5 - Underlying Transaction Details: Details of the transaction or obligation being supported by the SBLC
6. Appendix A - Specimen Signatures: Authorized signatures for all relevant parties
7. Appendix B - SWIFT Format: Standard SWIFT message format for SBLC issuance and amendments
Authors
Applicant
Banking Day
Beneficiary
Business Day
Confirmation
Confirming Bank
Credit
Default Event
Demand
Drawing
Effective Date
Event of Default
Expiry Date
FEMA
Force Majeure
Governing Law
ICC
ISP98
Issuing Bank
Letter of Credit
Material Adverse Effect
Nominated Bank
Notice
Original SBLC
Payment Obligation
Presentation
RBI
Reimbursing Bank
Related Documents
Relevant Authority
Required Documents
Sanctions
SBLC Amount
Security
SWIFT
Transaction Documents
Transfer
UCP 600
Underlying Transaction
Definitions
Credit Amount and Currency
Term and Validity
Drawing Rights
Payment Terms
Documentation Requirements
Bank Obligations
Applicant Obligations
Beneficiary Rights
Representations and Warranties
Events of Default
Transfer Rights
Assignment
Security
Counter-Indemnity
Fees and Charges
Amendments
Force Majeure
Anti-Money Laundering
Sanctions Compliance
Foreign Exchange Compliance
Governing Law
Jurisdiction
Dispute Resolution
Notices
Confidentiality
Severability
Entire Agreement
Waiver
Further Assurance
Banking and Financial Services
International Trade
Manufacturing
Import/Export
Commodities Trading
Infrastructure
Energy
Telecommunications
Pharmaceutical
Industrial Equipment
Textiles
Agriculture
Legal
Finance
Treasury
International Trade
Compliance
Risk Management
Banking Operations
Trade Operations
Credit Administration
Corporate Banking
Documentary Credits
Trade Finance Manager
International Business Development Manager
Chief Financial Officer
Finance Director
Treasury Manager
Credit Risk Manager
Compliance Officer
Legal Counsel
Banking Relationship Manager
Import/Export Manager
Trade Operations Manager
Documentary Credits Specialist
Senior Banking Officer
Financial Controller
International Trade Specialist
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