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The Non-Operative Letter of Credit is a specialized banking instrument commonly used in UAE international trade transactions where certain conditions must be met before the credit becomes active. This document type is particularly relevant when parties need to demonstrate a bank's preliminary commitment to issue a Letter of Credit, but specific requirements (such as regulatory approvals, document submissions, or payment of fees) must first be satisfied. The document follows UAE Federal Law No. 18 of 1993 (Commercial Code) and UAE Central Bank regulations, while also adhering to international banking standards through UCP 600. It provides a structured framework for complex international trade transactions, offering security to both importers and exporters while maintaining compliance with UAE legal requirements and banking practices. The non-operative status provides flexibility while legal, regulatory, or commercial conditions are being fulfilled.

1. Bank Header and Reference: Issuing bank's letterhead, contact details, and unique reference number for the Letter of Credit

2. Date and Place of Issue: Specific date and location where the Letter of Credit is issued

3. Credit Number: Unique identification number of the Letter of Credit

4. Beneficiary Details: Full name and address of the party in whose favor the Letter of Credit is issued

5. Applicant Details: Full name and address of the party requesting the Letter of Credit

6. Currency and Amount: Specification of the currency and exact amount of the Letter of Credit

7. Expiry Details: Date and place of expiry of the Letter of Credit

8. Available With/By: Specification of how and where the credit is available (payment, acceptance, or negotiation)

9. Documents Required: Detailed list of documents that must be presented for the credit to be honored

10. Shipment Terms: Details of shipment including latest shipment date and partial shipments/transshipment conditions

11. Credit Non-Operative Statement: Clear statement indicating that the Letter of Credit is not yet operative and conditions for it to become operative