Standby letter of credit meaning

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Schedule of amendments A compiled list of changes to a standard form contract in which the parties record their agreed departures from the issued terms. Accordingly, it should be read alongside the underlying standard form. The parties should ensure any negotiated and agreed schedule of amendments is duly incorporated into the contract. Within NEC3/NEC4 suites, such alterations to the standard form are known as Z clauses. Refer to Practice Notes: Construction contract documents and Selection of standard form construction contracts, and to our relevant Precedent schedules under the Precedents tab in subtopics: JCT contracts 2024—overview, JCT contracts 2016, JCT contracts 2011, NEC contracts and Other standard form construction contracts. Schedule of rates/prices A schedule used in tendering when precise quantities are not established, or within a lump sum arrangement for pricing variations (often termed a Bill of Quantities). The tenderer...

Documents for a typical project finance transaction These can be divided into three main groups: Finance documents — set the rules for the project’s debt funding, covering the senior debt together with any related facilities (for example, a cost overrun facility or another standby facility) and any ancillary facilities (for example, a letter of credit facility or a working capital facility). Project documents — the suite of contracts on which the project rests, typically including the concession agreement (if any), the construction contract, the operation and maintenance contract, and supply and offtake contracts (for more information, see: Project documents—issues for lenders—overview). Shareholder or equity documents — govern the equity investment terms and the relationships between the project’s investors (for more information on equity support in project finance, see Practice Note: Equity support in project finance). This Practice Note focuses on the first set — the finance documents — outlining what they comprise and highlighting some of the principal terms contained within...

Commercial letters of credit Commercial letters of credit (sometimes called traditional letters of credit or L/Cs) are used to facilitate the movement of goods in both international and domestic trade. They are commonly adopted as the method of payment under contracts of sale, especially where a seller is concerned about a buyer’s creditworthiness or the legal framework of the buyer’s jurisdiction. They are also referred to as documentary letters of credit or documentary credits. By comparison, standby letters of credit form a distinct type and serve a different role. They are applied in similar situations to on demand guarantees or performance bonds, providing a mechanism to secure payment or other obligations. They operate as a form of quasi-security. For information on standby letters of credit, see Practice Note: Characteristics of standby letters of credit and Q&A: What is the difference between a standby letter of credit and a letter of credit?...

[ To be printed on the headed paper of the issuing bank ] To: [ insert name and address of beneficiary ] Date: [ insert date ] Dear [ insert organisation name ] Standby letter of credit number [ insert number ] At the instruction of, and for the account of, [ insert name of applicant ] of [ insert address of applicant ] (the Principal Debtor), we issue in your favour this irrevocable standby letter of credit (the Standby Letter of Credit). Our total aggregate liability to you under this Standby Letter of Credit is limited to a maximum of [ insert maximum aggregate liability and currency ]. This Standby Letter of Credit will lapse at the close of banking hours at our offices on [ insert expiry date ] (the Expiry Date). We shall have no obligation to honour any demand presented under this Standby Letter of Credit that reaches us after that time on the Expiry Date. ...