Recourse Letter Of Credit Template for Singapore

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Key Requirements PROMPT example:

Recourse Letter Of Credit

"Need a Recourse Letter of Credit for a Singapore-based manufacturing company importing machinery worth USD 2.5 million from Germany, with specific requirements for partial shipments and a validity period until March 2025."

Document background
A Recourse Letter of Credit is a specialized financial instrument commonly used in international trade transactions under Singapore law. It provides security to sellers while protecting the issuing bank's interests through maintained recourse rights against the applicant. This document is particularly relevant when banks require additional security in trade finance transactions, incorporating specific terms for reimbursement and clearly outlining the conditions under which the bank can exercise its recourse rights. The document adheres to Singapore's stringent financial regulations and international banking practices, making it a preferred choice for trade finance in the Asia-Pacific region.
Suggested Sections

1. Reference Details: Letter reference number, date, and bank identification details

2. Issuing Bank Information: Complete legal name, address, and contact details of the issuing bank

3. Beneficiary Information: Full legal name, address, and contact details of the beneficiary

4. Credit Amount and Currency: Specified amount of the Letter of Credit and currency denomination

5. Recourse Terms and Conditions: Detailed conditions under which the bank maintains recourse rights against the applicant

6. Payment Terms: Specific conditions and timing for payment, including presentation requirements

Optional Sections

1. Partial Shipments Clause: Terms regarding whether partial shipments are permitted (used for trade-related L/Cs)

2. Transhipment Terms: Conditions governing allowed transhipment arrangements (used for international trade L/Cs)

3. Insurance Requirements: Specific insurance requirements and conditions (used when additional security is required)

4. Electronic Presentation: Terms for electronic presentation of documents (used when e-presentation is permitted)

Suggested Schedules

1. Schedule A - Required Documents: Comprehensive list of documents that must be presented for payment

2. Schedule B - Fee Schedule: Detailed breakdown of all applicable fees, charges, and commission

3. Schedule C - Standard Terms and Conditions: Bank's standard Letter of Credit terms and conditions

4. Schedule D - Security Documentation: Details of any related security or collateral arrangements

5. Appendix 1 - UCP 600 Incorporation: Specific reference to and incorporation of UCP 600 rules

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Bills of Exchange Act (Chapter 23): Primary Singapore legislation governing negotiable instruments including bills of exchange, which is relevant for Letters of Credit transactions

International Business Act (Chapter 152): Singapore law governing international business transactions and related financial instruments

Banking Act (Chapter 19): Key legislation regulating banking institutions in Singapore, including their ability to issue Letters of Credit

Contract Law (Chapter 53): Fundamental legislation governing contractual relationships and obligations in Singapore

UCP 600: Uniform Customs and Practice for Documentary Credits - International chamber of commerce rules governing documentary credits and Letters of Credit

ISBP: International Standard Banking Practice - Detailed guidelines for examining documents under UCP 600

ICC Rules: International Chamber of Commerce rules providing additional guidance on international trade finance practices

MAS Guidelines: Monetary Authority of Singapore regulatory guidelines affecting banking and financial institutions' practices regarding Letters of Credit

Singapore Code on Take-overs and Mergers: Regulations that may affect Letters of Credit used in corporate takeover situations

Electronic Transactions Act: Legislation governing electronic transactions and digital documentation, relevant for electronic Letters of Credit

AML/CFT Regulations: Anti-Money Laundering and Countering the Financing of Terrorism regulations affecting Letter of Credit transactions

Companies Act: Legislation governing corporate authority and capacity to enter into Letter of Credit arrangements

Singapore Case Law: Relevant court decisions and precedents from Singapore courts regarding Letters of Credit interpretation and enforcement

Common Law Principles: Applicable common law principles, particularly from English law, given Singapore's common law heritage

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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