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    Draft L/C Format: Document Required For Negotiation

    Uploaded by

    Abdul Latif
    This document provides a draft format for a letter of credit (LC). It includes fields for the date of issue, LC number, form, amount, expiry date, applicant, beneficiary, negotiating bank, and merchandise. It specifies that the beneficiary can negotiate drafts drawn on the LC openers bank for 100% of invoice value along with signed invoices, evidence of energy billing, and any documents required by the purchase order. It also lists special conditions such as the LC being revolving, charges, drawing limits, and requirements to maintain the face value and not amend terms without consent.

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    © All Rights Reserved
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    Draft L/C Format: Document Required For Negotiation

    Uploaded by

    Abdul Latif
    286 views3 pages
    This document provides a draft format for a letter of credit (LC). It includes fields for the date of issue, LC number, form, amount, expiry date, applicant, beneficiary, negotiating bank, and merchandise. It specifies that the beneficiary can negotiate drafts drawn on the LC openers bank for 100% of invoice value along with signed invoices, evidence of energy billing, and any documents required by the purchase order. It also lists special conditions such as the LC being revolving, charges, drawing limits, and requirements to maintain the face value and not amend terms without consent.

    Original Title

    LC-Format

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    This document provides a draft format for a letter of credit (LC). It includes fields for the date of issue, LC number, form, amount, expiry date, applicant, beneficiary, negotiating bank, and merchandise. It specifies that the beneficiary can negotiate drafts drawn on the LC openers bank for 100% of invoice value along with signed invoices, evidence of energy billing, and any documents required by the purchase order. It also lists special conditions such as the LC being revolving, charges, drawing limits, and requirements to maintain the face value and not amend terms without consent.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    286 views3 pages

    Draft L/C Format: Document Required For Negotiation

    Uploaded by

    Abdul Latif
    This document provides a draft format for a letter of credit (LC). It includes fields for the date of issue, LC number, form, amount, expiry date, applicant, beneficiary, negotiating bank, and merchandise. It specifies that the beneficiary can negotiate drafts drawn on the LC openers bank for 100% of invoice value along with signed invoices, evidence of energy billing, and any documents required by the purchase order. It also lists special conditions such as the LC being revolving, charges, drawing limits, and requirements to maintain the face value and not amend terms without consent.

    Copyright:

    © All Rights Reserved
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    DRAFT L/C FORMAT

    DATE OF ISSUE :

    LC NO. :

    FORM OF LC :

    AMOUNT OF LC :

    EXPIRY DATE :

    LAST SHIPMENT DATE :

    EXPIRY PLACE :

    APPLICANT :

    BENEFICIARY :

    NEGOTIATING BANK :

    MERCHANDISE :

    We hereby issue in your favour this documentary credit which is available by


    negotiation of your drafts at sight drawn on L/C Openers Bank at Chennai on account of
    M/s.TANGEDCO Limited bearing the number, date of the documentary credit and the
    name of the issuing bank of this credit for 100% invoice value accompanied by the
    following documents.

    Document required for negotiation:-

    1. Signed passed commercial invoice by Engineer’s concerned in Triplicate for gross


    value.
    2. Evidence for energy billing in Triplicate.
    3. Any other document required as per PO conditions.

    AUTHORISED SIGNATORY

    CONTINUED ON PAGE NO.002 WHICH IS AN INTEGRAL PART OF THIS LC


    LC No.

    Despatch From :
    Shipment To :

    Part Shipment:

    Transhipment:

    This LC is a revolving LC for total amount of Rs………………….. (Rs…………………….


    ………………….. only) with automatic reinstatement for Rs………………..
    (Rs…………………………………………. only) or part thereof up to a total value not exceeding
    Rs…………………………………………. valid up to

    Special conditions:

    1. All documents must be in English.


    2. LC opening Charges, Maintenance Charges, Negotiation Charges and Renewal
    Charges to be levied by the issuing bank are to the account of Beneficiary.
    3. This is revolving letter of credit which will revolve once in a month for a period
    upto ……….The total drawing power under this LC cannot exceed Rs……… for
    each negotiation. The total value of negotiation with this LC shall not exceed
    Rs…….
    4. The issuing bank unconditionally and irrevocably undertakes that following any
    payment pursuant to a demand, it shall immediately thereafter reinstate the
    value of this letter of credit by entire amount paid in order to restore this letter
    of credit to the original face value once in days. The issuing bank shall notify the
    beneficiary immediately after any reinstatement of the letter of credit to the face
    value.
    5. The issuing bank undertakes not to amend any of the terms and conditions of
    this letter of credit without the prior written consent of the beneficiary during the
    validity of this letter of credit.
    General Conditions:

    Discrepant documents to be sent strictly on collection basis and bill schedule to indicate
    specific discrepancies noted. In case of discrepant documents we may seek the
    disposal instruction from the applicant. Should such discrepancies waived by the
    applicant, we may release the documents and effect settlement after deducting the
    discrepant document handling charges, notwithstanding any prior communication to the
    presenter that we are holding the documents at the presenter’s disposal unless we have
    been instructed otherwise by the presenter prior to our release of the documents.

    We hereby engage with the drawers and / or bonafide holders that the drafts drawn
    and negotiated in conformity with the terms of this credit will be duly honoured on
    presentation and the drafts accepted within the terms of this credit will be duly
    honoured on maturity.

    The amount of each draft must be endorsed on the reverse of this credit by the
    negotiating bank. This credit is subject to Uniform Customs and Practices for
    Documentary Credits ICC 600.

    N.B :

    The draft format of LC is furnished. However any variations in the terms and conditions
    of the draft format of the LC will be mutually discussed and agreed. The LC format will
    be as per the finally selected L/C openers Bankers Format.

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