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Irrevocable Standby Letter

This document is an Irrevocable Standby Letter of Credit issued in favor of the City of Lincoln for a subdivider, detailing the conditions under which the bank will honor drafts. It outlines the necessary documentation required for drawing on the credit, the automatic renewal conditions, and the process for reducing the credit amount. The credit is governed by the Uniform Customs and Practice for Documentary Credits as per the International Chamber of Commerce guidelines.

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33 views2 pages

Irrevocable Standby Letter

This document is an Irrevocable Standby Letter of Credit issued in favor of the City of Lincoln for a subdivider, detailing the conditions under which the bank will honor drafts. It outlines the necessary documentation required for drawing on the credit, the automatic renewal conditions, and the process for reducing the credit amount. The credit is governed by the Uniform Customs and Practice for Documentary Credits as per the International Chamber of Commerce guidelines.

Uploaded by

EXA Exporters Academy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Bank Letterhead

__________________
(Date)

BENEFICIARY:
City of Lincoln
c/o City Attorney’s office
555 South 10th Street, Suite 300
Lincoln, NE 68508

Attn: City Attorney

RE: Irrevocable Standby Letter of Credit

We hereby issue our Irrevocable Standby Letter of Credit No. _______________ in your favor for the
account of ________________________ (name of subdivider) for ____________________________
(Subdivision name) to expire at _________________________ (name of bank) on _________________
(date).

We hereby undertake to honor your draft under and in compliance with the terms of this Letter of Credit,
when accompanied by the specified documents.

1. Sight Draft.
2. Beneficiary’s signed reading “We are drawing on Irrevocable Standby Letter of Credit as
_______________________ (name of subdivider) has failed to timely complete the improvements as
listed below within _______________________ (Subdivision name), an addition to the City of Lincoln,
(after applicable notice and cure periods) to the satisfaction of the City of Lincoln.”

Improvement Dollar Amount

(List Improvements) (List $ Amounts)

Grand Total –

OR

Beneficiary signed statement reading: “We are drawing on the Irrevocable Standby Letter of Credit
because notice has been received that this Letter of Credit will not be renewed and satisfactory substitute
security has not been posted to ensure completion of the work.”

It is a condition of this Letter of Credit that it shall be deemed automatically extended without amendment
for one year from the present or any future expiration date hereof, unless 30 days prior to any such date
________________________ (name of bank) shall notify Beneficiaries in writing by express courier
service delivered to the City Attorney’s office that we elect not to consider this Irrevocable Standby
Letter of Credit renewed for any such additional period.
This Irrevocable Standby Letter of Credit will be reduced upon written notification from the applicant and
acceptance by the beneficiary that individual components have been completed. This notice will need to
be provided to _______________________ (name of bank) stating the amount of reduction.

The signed draft under this Letter of Credit must bear upon its fact the word: DRAWN UNDER
IRREVOCABLE STANDBY LETTER OF CREDIT NO. _______________.

This credit will be subject to the Uniform Customers and Practice for Documentary Credits (1993
Revisions) International Chamber of Commerce Publication No. 500 or any Successor Publications.

(Name of Bank)

By: ______________________________________
Title: _________________________________

(Address)

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