Letter of Credit Templates and Samples
What Is a Letter of Credit?
A Letter of Credit is a special type of bank guarantee that confirms the bank's promise to pay the seller (beneficiary) on behalf of the buyer (applicant) a specified amount of money that covers the purchaser's contractual obligations. If you are looking for a Letter of Credit template suitable for your situation, you may check out our library below.
Whether the parties engage in international trade where the goods are delivered for a certain sum of money or there is a performance transaction and the contractor must work on a building project, a Credit Letter serves as a guarantee that both parties intend to carry out their contractual duties and are prepared to enlist the support of a financial institution to show their goodwill.
Credit Letter Types
Below you can find the most commonly used Letter of Credit templates - ensure the full and timely payment to the beneficiary of the contract and build a trusting relationship with your business partner.
- Generic Letter of Credit. This is a generic template you can prepare for any occasion whether the transaction you need to secure is small or large, domestic or international.
- Standby Letter of Credit. Clients can benefit from this secondary payment option that safeguards the interests of the seller in case the purchaser can no longer make payments.
- Irrevocable Letter of Credit. Quite similar to the document above, this bank guarantee cannot be modified by the choice of one of the parties or the bank.
How to Write a Letter of Credit?
Each document is unique, and it is up to the bank to determine which provisions are listed in the final version of the letter. However, at a minimum, consider including the following details in your Letter of Credit:
- Identification of the bank, beneficiary, and applicant.
- Description of the original contract between the parties that will be covered by the credit and a short reference to the contractual obligations that must be fulfilled.
- The unequivocal promise of the bank to pay on behalf of the breaching party - here you can choose which events and notifications trigger the payment.
- The expiration date of the bank offer to secure the payment.
- A Letter of Credit fee - generally, paid by the seller.
- Signatures of the parties.
Haven't found what you're looking for? Take a look at the related templates below:
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This Form is used for issuing an irrevocable letter of credit in the state of Texas.
This form is used for creating an irrevocable letter of credit in the state of New Jersey.
This Form is used for creating an Irrevocable Standby Letter of Credit in Indiana.
This form is used for requesting a letter of credit in order to make a deposit for workers' compensation in California.
This form is used for making amendments to an irrevocable letter of credit in the state of Florida.
This form is used for creating an irrevocable letter of credit for mobile home dealers in Florida.
This form is used for creating an irrevocable letter of credit for motor vehicle dealers in Florida.
This form is used for requesting a letter of credit in the state of Kentucky.
This form is used for securing a personal bond using a letter of credit in the state of Missouri.
This form is used for confirming an irrevocable letter of credit in the state of Missouri. It verifies the existence and terms of the letter of credit.
This Form is used for issuing a letter of credit in the state of Michigan. A letter of credit is a financial instrument that guarantees payment to a seller from a buyer, usually in international trade transactions.
This type of document is a Specimen Letter of Credit that is used specifically for First Mortgage Applications in Michigan. It is designed for use by Michigan Mortgage Brokers, Lenders, and Servicers.
This Form is used for completing a specimen letter of credit for Michigan mortgage brokers, lenders, and servicers when processing second mortgage applications.
This document is a sample of a non-negotiable Letter of Credit, commonly used in Maryland for international trade transactions.
This form is used for creating an Irrevocable Letter of Credit in the state of Kentucky. It is a legally binding document that guarantees payment to a beneficiary under specified conditions.
This Form is used for obtaining a letter of credit from the state of Kentucky.
This document is used for creating a financial security instrument known as an Irrevocable Letter of Credit in the state of Illinois.
This form is used for establishing a standby trust agreement to demonstrate liability coverage for a letter of credit in the state of Kentucky.
This document guarantees payment to the beneficiary in Mississippi, and is irrevocable, meaning it cannot be cancelled or changed without the consent of all parties involved. It provides a secure form of payment for a specified amount in case the buyer fails to fulfill their obligations.
This document is a type of guarantee used in North Carolina for certain financial transactions. It provides an assurance to the recipient that payment will be made by a third party if the debtor defaults on their obligations.
This form is used to establish an irrevocable letter of credit in the state of Ohio.
This type of document is a form used for issuing a letter of credit in the state of Ohio. A letter of credit is a payment guarantee used in international trade transactions, which ensures that the seller will receive payment from the buyer.
This document is used in Ohio for providing financial assurance through a letter of credit. It serves as proof that funds are available to cover potential financial obligations.
This document is used for establishing an irrevocable letter of credit in Oregon.
This form is used for applying for a Manufactured Structures Dealer Irrevocable Letter of Credit in the state of Oregon.
This document is a Mortgage Servicer Irrevocable Letter of Credit specifically for use in Oregon. It is a form that is used by mortgage servicers to provide a guarantee of payment to the lender in case of default on a mortgage loan.
This document is used to provide a guarantee of payment from a bank in Oregon to a beneficiary. It cannot be modified or cancelled without the consent of all parties involved.
This document is used for guaranteeing payment to a recipient, usually in an international business transaction, that cannot be revoked or canceled by the issuing bank without the recipient's consent.
This document is used for creating an irrevocable standby letter of credit in the state of Texas. It provides a guarantee of payment to the beneficiary in case the applicant fails to fulfill their obligations.
This form is used for establishing an irrevocable letter of credit for a credit services business in the state of Virginia.
This document is used for an Irrevocable Standby Letter of Credit in the state of Washington.
This Form is used for requesting a letter of credit for third-party damages resulting from environmental pollution liability. It includes an optional standby trust agreement for facilities in Utah that are involved in waste transfer, processing, re-refining, or off-specification burning.
This form is used for an Irrevocable Standby Letter of Credit in the state of Virginia.
This Form is used for an Irrevocable Letter of Credit in South Carolina.
This type of document is a legally binding agreement between a buyer and a seller, issued by a bank in Louisiana. It guarantees that payment will be made to the seller as long as all the terms and conditions of the credit are met.
