Lc Without Recourse Template for United States

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Key Requirements PROMPT example:

Lc Without Recourse

"I need a Letter of Credit Without Recourse for a $2.5M manufacturing equipment purchase from a German supplier, with payment to be made in three installments and document presentation required by March 15, 2025."

Document background
The LC Without Recourse is a specialized financial instrument utilized in international trade transactions where the beneficiary requires additional security against potential claims. This document type is particularly crucial when dealing with high-value international transactions or when trading with new partners in unfamiliar markets. The without recourse provision means that once the beneficiary has presented compliant documents, the issuing bank cannot later claim reimbursement from them, even if issues arise with the underlying transaction. Operating under United States jurisdiction, specifically UCC Article 5 and federal banking regulations, this document incorporates standard international banking practices (UCP 600) while providing comprehensive details about payment terms, document requirements, shipping conditions, and bank obligations. It's commonly used in situations where the beneficiary wants to eliminate the risk of future claims or when the transaction involves complex international shipping and payment arrangements.
Suggested Sections

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

2. Form of Credit: Specification that this is an irrevocable letter of credit without recourse

3. Date and Place of Expiry: Clear statement of when and where the LC expires

4. Beneficiary Details: Complete name and address of the beneficiary (seller/exporter)

5. Applicant Details: Complete name and address of the applicant (buyer/importer)

6. Currency and Amount: Specified currency and maximum amount available under the LC

7. Available With/By: Specification of where and how the credit is available (payment, acceptance, negotiation)

8. Partial Shipments/Transhipment: Whether partial shipments or transhipment is allowed or prohibited

9. Loading/Dispatch/Taking in Charge: Shipping details including place of departure

10. For Transportation To: Final destination of the goods

11. Latest Date of Shipment: Final date by which shipment must be made

12. Required Documents: List of all required documents for presentation

13. Additional Conditions: Any specific conditions or terms that must be met

14. Charges: Specification of which party bears which bank charges

15. Presentation Period: Time period within which documents must be presented

Optional Sections

1. Transferability Clause: Required if the LC needs to be transferable to another beneficiary

2. Revolving Credit Terms: Include when the LC is designed to be automatically renewed under specified conditions

3. Red Clause Provisions: Include when advance payment to the beneficiary is permitted

4. Back-to-Back Arrangements: Required when the LC is part of a back-to-back LC structure

5. Green Clause Provisions: Include when storage of goods is involved with advance payment

6. Confirmation Instructions: Required when confirmation by another bank is requested

7. Special Reimbursement Instructions: Include when specific reimbursement arrangements are required

Suggested Schedules

1. Schedule A - Document Requirements: Detailed list and specifications of required documents including format, copies, and content requirements

2. Schedule B - Goods Description: Detailed description of the goods, including specifications, quantity, and unit price

3. Schedule C - Special Payment Terms: Detailed description of any special payment arrangements or conditions

4. Appendix 1 - Required Document Formats: Sample formats or templates for required documents

5. Appendix 2 - Shipping Terms: Detailed shipping instructions and requirements

6. Appendix 3 - Bank Contact Details: Complete contact information for all banks involved in the transaction

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

Clauses
Relevant Industries

Banking and Financial Services

International Trade

Manufacturing

Import/Export

Shipping and Logistics

Commodities Trading

Retail

Wholesale

Agriculture

Energy

Mining

Textiles

Electronics

Automotive

Relevant Teams

Trade Finance

International Banking

Global Transaction Services

Credit Risk

Legal

Compliance

Treasury

Operations

Documentary Credits

Trade Operations

Export Finance

Import Operations

Financial Control

Corporate Banking

Relevant Roles

Trade Finance Manager

International Banking Officer

Documentary Credits Specialist

Export Finance Manager

Import Operations Manager

Trade Operations Officer

Credit Risk Officer

Commercial Banking Manager

International Trade Specialist

Treasury Manager

Documentary Collections Officer

Trade Services Manager

Global Transaction Banking Officer

Letter of Credit Specialist

Compliance Officer

Chief Financial Officer

Industries
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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