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The Bank Standby Letter of Credit is a specialized financial instrument used to provide payment security in commercial transactions. This document type is particularly relevant when parties seek a reliable, bank-backed guarantee for performance or payment obligations. Under Austrian law, these instruments incorporate both domestic legal requirements and international banking practices, particularly the International Standby Practices (ISP98) and local banking regulations. The document specifies the conditions under which the bank will make payment, typically upon presentation of specified documents indicating a default or non-performance by the applicant. It includes crucial details such as the maximum amount, validity period, drawing conditions, and governing law provisions. Bank Standby Letters of Credit are commonly used in international trade, construction projects, and various commercial transactions where parties require a secure, independent payment guarantee.

1. Letter Reference and Date: Unique reference number and date of issuance of the SBLC

2. Issuing Bank Details: Complete name, address, and contact information of the issuing bank

3. Beneficiary Details: Full name and address of the beneficiary to whom the SBLC is issued

4. Applicant Details: Full name and address of the party requesting the SBLC

5. Amount and Currency: The maximum amount and currency for which the SBLC is issued

6. Expiry Date: Clear statement of when the SBLC expires and where it must be presented

7. Undertaking: The bank's commitment to pay and the conditions under which payment will be made

8. Drawing Terms: Specific requirements and documentation needed for making a claim under the SBLC

9. Governing Law: Statement that Austrian law governs the SBLC

10. Transfer Provisions: Whether and how the SBLC may be transferred to another beneficiary