Standby Letter Of Credit For Lease Template for Nigeria

The Standby Letter of Credit for Lease is a crucial financial instrument used in Nigerian commercial leasing arrangements to provide security for lease obligations. This document is typically required when a landlord seeks additional security beyond the tenant's direct covenant, particularly in high-value commercial leases or when dealing with newly established companies. The document, governed by Nigerian law and international banking practices, creates an irrevocable commitment from a bank to pay the landlord a specified sum upon presentation of compliant documents evidencing the tenant's default. It includes specific details about the underlying lease, drawing conditions, expiry terms, and documentary requirements. The instrument combines elements of Nigerian banking regulations, property law, and international standby letter of credit practices, making it a sophisticated security instrument for lease transactions.

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

2. Date and Place of Issue: Clear statement of when and where the SLOC was issued

3. Credit Number: Unique identification number for the standby letter of credit

4. Beneficiary Details: Complete name and address of the landlord/lessor who will be entitled to draw under the SLOC

5. Applicant Details: Complete name and address of the tenant/lessee who requested the SLOC

6. Amount and Currency: Maximum amount available under the credit and currency denomination

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

8. Form of Presentation: Specified format and location for presenting documents for payment

9. Drawing Terms: Conditions under which the beneficiary can draw on the SLOC, including required documentation

10. Lease Reference: Details of the underlying lease agreement being secured

11. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and relevant jurisdiction

12. Bank Authorization: Official signatures and authorizations from the issuing bank