Document background
The Non-Operative Letter of Credit is a crucial instrument in international trade finance, particularly under Singapore's robust financial framework. It provides a secure payment mechanism where banks act as intermediaries between buyers and sellers, reducing transaction risks. This document type is commonly used when parties require a formal bank guarantee for cross-border transactions but haven't yet activated the credit facility. The document must comply with UCP 600 guidelines and Singapore banking regulations, typically including specific terms for document presentation, payment conditions, and validity periods.
