Irrevocable Letter Of Credit Template for United States

The Irrevocable Letter of Credit is a crucial financial instrument used in commercial transactions, particularly in international trade, where parties seek secure payment methods. This document is specifically designed for use under United States jurisdiction, complying with UCC Article 5 and federal banking regulations. It represents a bank's irrevocable commitment to pay the beneficiary upon presentation of compliant documents, thereby reducing payment risk in commercial transactions. The document includes detailed specifications of payment terms, required documentation, and conditions for payment, providing security to both buyers and sellers in complex commercial transactions. It's particularly valuable when parties are in different countries or jurisdictions, or when there's a need for additional payment security in high-value transactions.

1. Letter of Credit Number and Date: Unique identification number and issuance date of the Letter of Credit

2. Issuing Bank Details: Complete name, address, and contact information of the issuing bank

3. Beneficiary Information: Full name and address of the party in whose favor the Letter of Credit is issued

4. Applicant Information: Full name and address of the party requesting the Letter of Credit

5. Amount and Currency: Maximum amount and currency of the Letter of Credit, written in both figures and words

6. Expiry Date and Place: Clear statement of when and where the Letter of Credit expires

7. Available With/By: Specify whether credit is available by sight payment, deferred payment, acceptance, or negotiation

8. Required Documents: Detailed list of documents that must be presented for payment

9. Shipment Terms: Details of shipment including latest shipment date and partial shipments if applicable

10. Description of Goods/Services: Brief description of the goods or services covered by the Letter of Credit

11. Irrevocability Statement: Clear statement that the Letter of Credit is irrevocable

12. Governing Law and Jurisdiction: Statement specifying applicable law and jurisdiction