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Performance Letter Of Credit
"I need a Performance Letter of Credit for a 鈧5 million construction project in Vienna, where my company is the main contractor for a commercial building development, with the LC to be valid until March 2025 and include specific milestone-based reduction provisions."
1. Issuing Bank Details: Full name and address of the issuing bank
2. Letter of Credit Number: Unique reference number for the LC
3. Date of Issue: Date when the Letter of Credit is issued
4. Beneficiary Details: Complete name and address of the party receiving the performance guarantee
5. Applicant Details: Complete name and address of the party requesting the LC
6. Date and Place of Expiry: Explicit statement of when and where the LC expires
7. Performance Contract Reference: Details of the underlying contract being guaranteed
8. Currency and Amount: Specified currency and maximum amount of the guarantee
9. Available With/By: Terms of availability and method of payment
10. Partial Drawings: Whether partial drawings are allowed or prohibited
11. Transferability: Whether the LC can be transferred to another beneficiary
12. Governing Law and Jurisdiction: Specification of Austrian law and relevant jurisdiction
13. Document Requirements: List of required documents for claiming under the LC
1. Special Conditions: Additional conditions specific to the particular performance being guaranteed
2. Force Majeure Clause: Optional provisions for extraordinary circumstances, particularly relevant for long-term performance guarantees
3. Multiple Beneficiary Terms: Required when the LC has more than one beneficiary
4. Step-in Rights: Optional provisions allowing the bank to step in and arrange for completion of the performance obligations
5. Reduction Schedule: Optional schedule for reducing the LC amount over time as performance milestones are met
6. Language Provisions: Required when the LC needs to be issued in multiple languages
7. Counter-Guarantee Terms: Required when there is a counter-guarantee from another bank
1. Schedule of Performance Milestones: Detailed timeline of performance obligations and corresponding guarantee amounts
2. Schedule of Required Documents: Comprehensive list of all documents required for various types of drawings
3. Form of Demand: Standard format for making a demand under the LC
4. Form of Reduction Certificate: Standard format for documenting agreed reductions in the LC amount
5. Authentication Procedures: Detailed procedures for verifying authentic demands and communications
Authors
Construction
Manufacturing
Infrastructure Development
Energy
Engineering
Technology
Telecommunications
Mining
Oil and Gas
International Trade
Project Development
Industrial Operations
Defense Contracting
Transportation
Utilities
Legal
Finance
Treasury
Project Management
Commercial Operations
Risk Management
Procurement
International Operations
Compliance
Credit Management
Trade Finance
Chief Financial Officer
Treasury Manager
Finance Director
Project Manager
Contract Manager
Legal Counsel
Banking Relations Manager
Trade Finance Manager
Risk Manager
Commercial Director
Procurement Manager
Company Secretary
Credit Manager
International Business Manager
Compliance Officer
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