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Standby Letter Of Credit Template for Austria

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Key Requirements PROMPT example:

Standby Letter Of Credit

"I need a Standby Letter of Credit for EUR 2.5 million to be issued by Austrian Creditbank AG in favor of WindPower GmbH as performance security for a wind farm construction project in Salzburg, with an expiry date of June 30, 2025."

Document background
The Standby Letter of Credit serves as a critical financial instrument in commercial transactions where parties seek additional payment or performance security. This document is particularly relevant when Austrian entities are involved or when parties choose Austrian law as the governing law. It provides a bank's irrevocable commitment to pay upon presentation of specified documents, typically stating a default or non-performance by the applicant. The structure follows international banking practices (such as ISP98) while complying with Austrian banking regulations, including the Austrian Banking Act (BWG) and Financial Market Authority (FMA) requirements. SBLCs are commonly used in international trade, project finance, and various commercial transactions where the beneficiary requires a reliable, independent payment guarantee from a creditworthy bank.
Suggested Sections

1. Issuing Bank Details: Full name, address, and reference numbers of the issuing bank

2. Beneficiary Details: Complete identification and address of the beneficiary of the SBLC

3. Applicant Details: Complete identification and address of the party requesting the SBLC

4. SBLC Number and Date: Unique identification number and issuance date of the SBLC

5. Amount and Currency: Maximum amount available under the SBLC and currency specification

6. Expiry Details: Expiry date and place of the SBLC

7. Drawing Terms: Specific conditions and documentation required for drawing under the SBLC

8. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction details

9. Bank Authorization: Official signatures and authorizations from the issuing bank

Optional Sections

1. Automatic Extension Clause: Used when the SBLC needs to include an 'evergreen' provision for automatic renewal

2. Partial Drawing Provisions: Include when multiple or partial drawings are to be permitted under the SBLC

3. Transfer Rights: Include when the SBLC needs to be transferable to other beneficiaries

4. Counter-Guarantee Reference: Required when the SBLC is issued under a counter-guarantee from another bank

5. Special Payment Instructions: Include when specific payment routing or methods need to be specified

6. Force Majeure Provisions: Optional additional protection for exceptional circumstances

7. Language Declaration: Required when the SBLC is issued in multiple languages

Suggested Schedules

1. Schedule A - Required Documents: Detailed list of documents required for drawing under the SBLC

2. Schedule B - Form of Demand: Prescribed format for making a demand under the SBLC

3. Schedule C - Underlying Transaction Details: Reference to the underlying commercial transaction or obligation

4. Appendix 1 - Authentication Procedures: Details of any specific authentication requirements for drawings

5. Appendix 2 - Special Conditions: Any additional terms or conditions specific to this SBLC

6. Appendix 3 - Fee Schedule: Details of any banking fees and charges applicable to the SBLC

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
































Clauses

























Relevant Industries

Banking and Financial Services

International Trade

Construction

Manufacturing

Energy

Infrastructure

Real Estate

Telecommunications

Transportation and Logistics

Oil and Gas

Mining

Project Finance

Import/Export

Relevant Teams

Legal

Finance

Treasury

Trade Finance

Risk Management

Compliance

International Banking

Corporate Banking

Documentary Credits

Operations

Relevant Roles

Trade Finance Manager

Credit Manager

Treasury Manager

Chief Financial Officer

Financial Controller

Banking Relationship Manager

Trade Finance Operations Officer

Risk Manager

Compliance Officer

Documentary Credits Specialist

International Trade Specialist

Project Finance Manager

Corporate Banking Officer

Legal Counsel

Commercial Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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