SAMPLE TEXT OF STANDBY – LETTER OF CREDIT

LONDON SHORT FORM / FORMAT 3034
STANDBY - LETTER OF CREDIT
(ON ISSUING BANK'S LETTERHEAD)
ISSUER:
LETTER OF CREDIT NUMBER:
DATE OF ISSUE:
DATE OF MATURITY:
DATE OF EXPIRATION:
BENEFICIARY:
WE, (bank) HEREBY OPEN OUR UNCONDITIONAL, IRREVOCABLE, TRANSFERABLE AND CONFIRMED LETTER OF CREDIT IN FAVOR OF (beneficiary) FOR THE AMOUNT OF U.S. DOLLARS (amount) ($XX,000,000.00 USD) DUE ONE YEAR AND ONE DAY FROM THE DATE OF ISSUE (THE MATURITY DATE).
PAYMENT IS AVAILABLE BY THE BENEFICIARY'S FIRST WRITTEN DEMAND VIA BANK WIRE SYSTEM. DEMAND HEREUNDER MUST BE MARKED DRAWN UNDER
LETTER OF CREDIT No. ___, DATED _______, 20__.
WE HEREBY ENGAGE WITH YOU THAT THE DRAFT DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS OF THIS LETTER OF CREDIT SHALL BE DULY HONORED ON DUE PRESENTATION TO US. THIS LETTER OF CREDIT IS SUBJECTED TO UNIFORM CUSTOMS AND PRACTICES FOR DOCUMENTARY CREDIT (1996 REVISION) I.C.C. PUBLICATION No. 400/500.
THIS CABLE IS AN OPERATIVE INSTRUMENT. ALL CHARGES ARE FOR THE ACCOUNT OF APPLICANT.
THIS LETTER OF CREDIT EXPIRES ON _____, 20__.

BY:
AUTHORIZED BANK OFFICER

BY:
AUTHORIZED BANK OFFICER