How to read letter of credit

how to read letter of credit

SAMPLE LETTER OF CREDIT/1

(See Instructions on Page 2)

Name and Address of Bank

Date: __________________

Irrevocable letter of Credit No. ______________

Beneficiary: Commodity Credit Corporation Account Party: Name of Exporter

Address of Exporter

Gentlemen:

We hereby open our irrevocable credit in your favor for the sum or sums not to exceed a total of _______________dollars ($__________), to be made available by your request for payment at sight upon the presentation of your draft accompanied by the following statement:

(Insert applicable statement)/2

This Letter of Credit is valid until _____________________/3, provided, however, that this Letter of Credit will be automatically extended without amendment for _________________/4 from the present or any

future expiration date thereof, unless at least thirty (30) days prior to any such expiration date the Issuing Bank provides written notice to the Commodity Credit Corporation at the U.S. Department of Agriculture, 14 th and Independence Avenue, S.W. Stop 1025, Washington, D.C. 20250-1025, of its election not to renew this Letter of Credit for such additional ______________________/5 period. The notice required hereunder will be deemed to have been given when received by you.

This letter of Credit is issued subject to the Uniform Customs and Practice for Documentary Credits, 2007 Revision, International Chamber of Commerce Publication No. 600

(Name of Bank)

By: _______________________

-2-

INSTRUCTIONS FOR LETTER OF CREDIT ISSUED FOR DEIP BID

Source: apps.fas.usda.gov

Category: Credit

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